Personal injury awards review
Cian O'Callaghan pressed the Taoiseach on confusion over a memo concerning a possible 17% increase in personal injury awards. The Taoiseach said there would be no motion seeking Dáil approval, but that the Oireachtas must consider the wider legislative consequences.
What is the Government at when it comes to personal injury awards? For weeks now we have been hearing about a memo that the Minister for justice is bringing to Cabinet. It concerns a review of awards by the Judicial Council which recommended a 17% increase. Initially it was reported that the Minister was going to rubber stamp that increase. This memo was due to go to Cabinet last week. Then it was reported that it was going to go to Cabinet yesterday. Now we hear that it might be next week after it first goes to a Cabinet subcommittee today. Can the Taoiseach tell us what is going on?
I should not need to tell the Taoiseach that a 17% increase in awards would be absolutely disastrous and the fact that the Government is even considering this is reckless. Personal injury awards in Ireland are already much higher than in other countries. Awards here can be more than four times higher than in the UK and still we are hearing that the Government is contemplating jacking them up even further by increasing awards by nearly one fifth. This will have an immediate knock-on effect on insurance premiums, not just for every household but for community groups, sports clubs and small businesses too.
Prices are soaring across the country. Grocery prices, rents, energy and transport costs are all sky rocketing and this is putting a huge strain on households. Wherever possible the Government should be doing everything it can to reduce costs, not further inflate them. A 17% increase in personal injury awards would do just that. It would drive insurance costs even higher at a time when so many people are struggling to get by.
Insurance costs in Ireland are already far too high and are often the reason community events end up getting cancelled. Sports clubs run by volunteers are under huge stress trying to meet constantly rising costs. Costs are an extra burden on households. Motor insurance premiums are now shooting up month after month. Increasing personal injury awards will add further fuel to this inflationary fire. Why is the Government even considering increasing them? Its sole focus should be on getting insurance costs down. Government dithering on this issue is causing huge concern. There are now fears it is delaying a decision until the Dail goes into recess, to try to avoid Dáil scrutiny and questioning on it. Can the Taoiseach level with us and give us a straight answer? Is the Government going to increase personal injury awards by 17%? Will the Taoiseach give a commitment that the Government will not go ahead with this increase?
Comment on this
It is intriguing how the Deputy presents the case. In one sentence he says that the Government is going to jack up insurance awards and in another sentence he says that we are dithering. He is apparently urging us to bring clarity but I do not think he is urging us to bring clarity. I think he is urging us to fulfil maybe entirely the implications of the Act so that he can then start attacking the Government for political reasons. The reality is that the Oireachtas has created this situation. The Oireachtas provided the Judicial Council with the powers to propose amendments to the personal injuries guidelines in 2019. Those provisions were introduced by the then Minister for Justice, Charlie Flanagan, and were supported by all parties at the time, including Sinn Féin, the Deputy's party and the Labour Party. It had a torturous progression and then, as the Deputy may recall, the Supreme Court became involved through the Delaney v. The Personal Injuries Board and Ors case. The court essentially said, in the context of the separation of powers, that it had to come back to the Oireachtas. If the guidelines recommended by the Judicial Council were to have effect, they would have to be affirmatively passed by the Dáil.
Again, for the interests of the public watching in, this is not something that the Government is bringing to the Dáil to jack up prices. It is unusual to frame it that way, to say it lightly, because the Supreme Court took a decision. It was a four to three majority ruling, which was tight, by the Supreme Court. I observe the separation of powers absolutely and believe in it.
Let us have a bit of realism and clarity about the debate. For me, there is a need for a review of the Judicial Council Act 2019 and the Minister for justice has committed to reviewing that Act. The Minister will also bring a memo to Government which will lay the guidelines before the Houses but he will not be bringing a resolution seeking their approval. The Deputy should not believe everything he reads in the newspapers.
Comment on this
The Taoiseach has clarified that there will not be an increase of 17%. He is giving that commitment to the Dáil now that the Government will not be putting forward an increase of 17%. I welcome that if that is the case. Awards here are four times higher than in the UK, so it would be a regressive move. If the Government is not doing that, that is welcome. The Taoiseach gave a history lesson on the legislation relating to this but the Judicial Council committee itself said that it could not carry out any meaningful analysis on the quantum of awards given under the guidelines to date that might inform this review. The committee itself was saying that it did not have sufficient data to be able to make an informed, good decision. I welcome the Taoiseach's confirmation that he is giving a commitment that there will be no increase brought to the Oireachtas by the Government on insurance awards. The Taoiseach is giving that commitment.
Comment on this
I have just said it to the Deputy. It will be laid before the House but there will be no accompanying motion to the House to approve. However, this is something that the Oireachtas in its entirety has to reflect on. There will be implications in that decision for the Personal Injuries Assessment Board because essentially now we have a vacuum here in terms of personal injury awards. There is a legislative framework there which had to be amended because of a Supreme Court decision. This has led to a situation where the Dáil has to approve whatever the Judicial Council recommendations are if they are to take effect. If the Dáil does not do the approval, they do not take effect but that could lead to consequences within the courts and within cases. It could ultimately have the impact of undermining the Personal Injuries Assessment Board. We need to reflect on this.
I get the short-term politics. The Deputy would probably have loved it if we came in and had an approval motion. Then he would have, from the comfort of Opposition, attacked us day in, day out for, as he put it, jacking up insurance premiums.