Safe drivers should be rewarded

IF insurance companies proceed with plans to impose a 25% hike on the premiums of motorists caught speeding under the penalty points system, the reverse must also apply.

In other words, the premiums of safe drivers should come down. While insurance firms say that in time there will be lower premiums for the 80% of drivers regarded as safe motorists, no deadline has been set for this proposal.

Criticism voiced by the Consumer Association is warranted. The watchdog body wants more definite proposals on how motorists will benefit. It believes companies will avail of any excuse to put up premiums but will not bring them down.

Motorists will support Transport Minister Seamus Brennan's refusal to hand the penalty points register over unless insurance companies offer drivers a quid pro quo. Tánaiste Mary Harney also wants drivers to benefit from cost reductions achieved under the points system.

But the companies insist drivers will not benefit unless they get hold of the register a classic Catch 22 scenario.

Meanwhile, it is time for the Government to put its money where its mouth is by scrapping the 2% levy imposed during the PMPA crisis. The money goes directly into Exchequer coffers and is an iniquitous form of double taxation.