Board backers slam Bacon report

SUPPORTERS of a new compensation board have reacted angrily to a report commissioned by lawyers that concluded there was a risk insurance costs and premiums would rise rather than fall if it was set up.

The Bar Council-commissioned report, by economist Dr Peter Bacon, investigated the potential economic costs and benefits of setting up the Personal Injuries Assessment Board (PIAB).

Bar Council chair Conor Maguire claimed the planned board was flawed and that barristers will fight its introduction at every stage.

A representative of the Motor Insurance Advisory Board that recommended setting up the board accused the Bar Council of “very irresponsible scaremongering.” The report was described by the insurance industry as one “commissioned by lawyers for lawyers.”

Tánaiste Mary Harney, the trade and industry minister, has announced an interim board will be set up next month. Mrs Harney, on a trade trip to Russia, said last night: “There are no plans to change the proposals to set up the PIAB.

The Bacon report challenges the belief that a significant number of cases will be taken out of the legal process, thus cutting court costs. Legal fees account for 40% of claims, it is argued. But claimants will still have access to the courts, where there is a dispute over liability and costs.

MIAB chair Dorothea Dowling said the legal profession refused to engage in discussion with her board when it was drawing up its proposals.

Martin Long, of the Insurance Industry Federation, said the report addressed the wrong question. “It should have been ‘how can you reduce fees?’”