asked the Minister for Industry, Commerce and Energy if he is aware of the marked increase in car insurances; and, if so, the reasons.

I am aware that increases in motor insurance granted to individual motor insurers in 1978 following consideration by the National Prices Commission did have the effect of substantially increasing the cost of motor insurance for certain vehicle owners. The increases varied from company to company and higher increases have been applied to third party liability in which the companies losses were highest. In other cases, such as comprehensive insurance, there have been some reductions in motor insurance costs.

The primary reason for the recent increase was the continued rise in the costs of claims resulting in turn from increases in the various elements in the claims and some rise in the frequency of accidents.

Does the Minister not accept that the marked increase in car insurance since the change of Government offsets the benefits accruing to motorists from the abolition of the road tax, or almost offsets it? Is the Minister further aware that it is almost impossible—except for those who are really well-off—for young people to get car insurance at present? Surely the Minister will accept that young persons between the ages of 17 and 25 need cars to go about their work the same as other adults and that something should be done about this car insurance because many people believe there is a great deal of racketeering attached to it?

As far as the first part of the Deputy's question is concerned—about the benefits of the removal of car tax being eroded—I do not accept that. I accept that there is a problem in the motor insurance field, firstly, in the level of premiums and, secondly, in the availability of cover. With this in mind I arranged a meeting in my Department with the heads of all the insurers operating in this country. I had them in the Department about a fortnight ago. There is a review of the whole availability of motor insurance being undertaken at present by the individual companies. They are expected to come back and see me within the next month to six weeks. If the Deputy would like to put down a further question in a couple of months time, I will give him the results of that review.

I am glad the Minister met the executives of these companies. Would he use his good offices—as I have no doubt he will—to try to get a fair deal for applicants for insurance in the 18 to 25 age group? As I have said already and as the Minister is himself aware, the demands being made on these people by insurance companies are out of proportion to what would be a reasonable figure and are far in excess of corresponding demands being made on similar people in Britain and Northern Ireland.

I have had the insurance companies in my Department and I will be discussing the matter further with them. It is important to mention that in calculating the increases given account was taken of the increase in frequency and average cost of claims up to 31 December last and projections for 1979—the increases were based on those figures. Of course the increase in the cost of claims is due mainly to factors such as the high level of court awards in cases of personal injury liability, the dramatic rise in the cost of motor vehicles, the constantly increasing cost of repairing vehicles and the increase in hospital charges which have to be taken into account when assessing premiums.