Scrappage and insurance costs
Senator Mulherin warned that many roadworthy older cars are being scrapped because insurers refuse cover or quote excessive premiums. She said rural motorists need cars and asked that the issue, including possible collusion, be examined.
I want to highlight the alarming state of affairs which results in tens of thousands of roadworthy vehicles being prematurely scrapped every year. It is a growing phenomenon. The rate at which it is happening this year means there will be a 129% increase on the number of vehicles scrapped last year. The big concern is it is not driven by a road safety issue per se, because all vehicles on the road have to have a certificate of roadworthiness, but by the fact insurance companies are universally refusing cover or quoting exorbitant premia for vehicles that are ten years old or older. The consequence is it is not economically viable to insure them and people have to replace their vehicles. Something stinks in this regard.
From an environmental point of view, it takes a lot of energy and carbon emissions to produce a vehicle. We have an NCT system in place to ensure vehicles are roadworthy. If we accept a vehicle is roadworthy, we have to be concerned if cars are being put off the road by insurance companies because it does not suit their agenda.
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There is another issue. Many people who have older vehicles cannot afford to buy newer vehicles. In rural Ireland a car is not a luxury, it is a necessity because we do not have public transport. When many youngsters get their first car, they get an older vehicle. The issue has to be examined. The Minister of State, Deputy D'Arcy, has to look into it and he needs to come to the House. I would like him to investigate if there is collusion between the big insurance companies and the motor manufacturers because this seems to favour the motor manufacturers.
Another issue, which has been well highlighted, is the number of imports from the UK. If people are replacing their second-hand vehicles with imports, VRT is not generated by the State.
Conor Faughnan comments on motoring matters on behalf of the AA on the radio and in the media all the time. He represents the AA, which is a big player in the insurance industry. I would like him to set out that there will be no impediment to people with vehicles that are ten years old or older obtaining insurance from his company at least and to shine some light on what is happening here.
I compliment Autobiz, which is the motor trade monthly magazine, on fighting this campaign because it is not good for local economies. There are serious questions to be answered.
A series of insurance issues have been raised in the Chamber in recent weeks. I would like the Minister of State, Deputy D'Arcy, to come in and deal with them.