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(Speaker Continuing)
[Deputy Frances Fitzgerald:   ] According to the overview, just over 34,000 new personal injury claims were submitted to PIAB with processing costs in 2016 at 6.4% of awards, a fraction of the costs had the claims it handled required litigation. It is a very important organisation, which is cost efficient and does its work in a timely way. The new legislation will further facilitate that.
In June 2014, a public consultation was held on the operation and implementation of the Personal Injuries Assessment Board with 29 submissions being received from a range of stakeholders. The outcome of the public consultation process has informed the general scheme of the personal injuries assessment board (amendment) Bill 2017. The submissions are available to view on the Department's website.
Deputy Niall Collins: There is no doubt but that we all agree that PIAB needs to be reformed and that its legislation needs to be updated. There are approximately 30,000 personal injury claims per annum of which only 12,000 go through PIAB. That indicates that there is huge room for improvement and to improve the throughput of work PIAB can perform. One of the underlying problems with the rising cost of insurance has been that many claims are settled outside PIAB and the courts, which has led to a lack of transparency and visibility. The costs associated with claims are borne ultimately by all of us as insurance premium payers. Costs of claims processed through PIAB are in the order of 6% whereas they can be in the order of 50% of a claim if they go through the courts.
Will the issues of unsustainable and fraudulent claims be addressed in the legislation? Will the Bill, which I am sure the Minister has had sight of, cover that area sufficiently? Can the Minister update us on the work being undertaken by the Competition and Consumer Protection Commission in its investigation into the insurance sector as mentioned in the media?
An Leas-Cheann Comhairle: I ask Deputies and the Minister to keep an eye on the clock. I hate to have to intervene all the time. The Tánaiste has one minute.
Deputy Frances Fitzgerald: The PIAB was established to remove unnecessary personal injuries cases from litigation. Estimates indicate that 70% of cases are now either resolved through the PIAB or settled directly between the parties. In accordance with the Acts, all personal injuries claims must be submitted to the PIAB. In some situations, however, the parties are happy to settle a claim at an early stage and without the need to refer it to the board. The PIAB assesses independently claims for compensation arising from personal injuries sustained as a result of motor or workplace accidents or in circumstances of public liability. An independent assessment is made and it is a matter for the parties as to whether they wish to accept the award. The PIAB does not address liability. Where liability is an issue, a respondent can refuse to consent to a PIAB assessment. Where the respondent refuses consent to an assessment or where either party rejects the award proposed, the board will issue an authorisation to the claimant to allow him or her to take legal proceedings.
There are two bodies working on issues relating to insurance at present. There is a commission to examine the issue of fraud chaired by Mr. Justice Nicholas Kearns. All relevant legal stakeholders are represented. The commission had its first meeting in February and has had eight meetings to date.
An Leas-Cheann Comhairle: We have to move on.
Question No. 4 replied to with Written Answers.
Regional Development
5. Deputy Seamus Healy asked the Tánaiste and Minister for Business, Enterprise and Innovation her plans to seek a change in enterprise policy in order that the south-east region can attract a more proportionate share of foreign direct investment and high potential start-ups in view of the fact the region has historically lagged behind; if the region will receive its fair share of the ten-year national investment plan; and if she will make a statement on the matter. [43252/17]
Deputy Seamus Healy: In view of the fact that the south-east region has historically lagged behind in both economic and regional development, will the Minister ensure there is a change in enterprise policy in order that the region attracts a more proportionate share of foreign direct investment and high-potential start-ups? Will she ensure the region gets its fair share of the national investment plan coming soon?
Deputy Frances Fitzgerald: My Department published Enterprise 2025 in 2015. It sets out the strategic framework for coherence across Departments to focus our resources to foster a better future and to deliver sustainable enterprise growth and jobs. As a small open economy, we rely on external demand and international markets for growth. Since its publication, there has been continued global economic uncertainty, including, for example, Brexit. That is why my Department is currently undertaking a review of Enterprise 2025. That is our vision. We are examining any adaptation that is required to deal with current economic uncertainty, the challenge of Brexit and changes in policy in other countries.
We continue to maintain our focus on the regions, in particular through the regional action plan for jobs process. Through these regional plans and processes, we have a focus on balanced regional development. Later in the year, the Government will publish the national planning framework and the national capital investment plan, which will focus strongly on balanced development. Inclusive of growth in our urban areas, these measures will also focus very much on balanced regional development.
The south-east action plan for jobs is the key policy response for supporting employment growth in the south-east region with public and private stakeholders actively engaged together to make progress on jobs. The core objective of the plan is to see a further 25,000 at work in the region by 2020 and to reduce the unemployment rate to within 1% of the State average. The first two progress reports on the implementation of the Action Plan for Jobs show that progress is being made. I have had the opportunity to meet with the members of the action group. I note that 13,000 jobs were created in the south east since the regional action plans for jobs initiative was launched and implemented in January 2015. The unemployment rate in the south east has fallen from 12.8% in 2015 to 8.1% by the second quarter of 2017. However, there is still work to be done.
Deputy Seamus Healy: Those responsible for the south-east area action plan for jobs briefed Oireachtas Members from the south east last Thursday. They brought with them a number of industry champions from the area who are involved in driving the region forward. Significantly, the group included the five CEOs of the local authorities in the region. The group is very concerned that the area has lagged behind historically and that unemployment levels in the region are the second highest nationally, while the region is second lowest in foreign direct investment. It is 4% in the region and 6% nationally with approximately 7% of these jobs as against a population of 11%. High potential start-ups are similarly 4.5% as against a population of 11% in the region. There is also, of course, a huge brain drain from the region with 67% of students leaving the region to study. Unfortunately, 40% of them fail to return. We ask for a genuine focus on the region and for real balanced regional development. There must at least be no further incentivisation of growth in the Dublin area. We further call for preferential treatment for the regions, in particular the south east.
Deputy Frances Fitzgerald: I have given the Deputy the figures on the improvements in job creation, including the reduction in the unemployment rate. It is good progress. However, I accept that more needs to be done and that the unemployment rate is higher than the overall national rate. It was more than 1% higher in the second quarter of 2017 than the national average of 6.4%. The building blocks are in place, however, between the work of the regional action plan, the industries that are there already and the IDA's property programme, which is supporting development in the area. |
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