Business Opinion: It is getting on for a year since the publication of the report of the Motor Insurance Advisory Board, writes John McManus.

In the run-up to the general election the Government quickly promised action and cynics were pleasantly surprised then when the Tánaiste came forward last August with an action plan for implementing the board's recommendations. Even more surprising was the Government's willingness to set a target of cutting motor insurance costs, and one would hope premiums, by 30 per cent.

That was then, and this is now some 10 months later but all we have to show for the Government's efforts is some vague comments from a few large insurance companies that motor insurance premiums might come down next year.

One of the features of the action plan published by the Tánaiste was that it set out who was responsible for implementing each of the 67 recommendations and also the contribution that each recommendation, when implemented, would make to lower insurance costs.

In some ways it is almost counterproductive to now engage in a box ticking exercise to find out who is dragging their feet. Particularly if it acts a deterrent to this sensible approach being followed in the future.

However, the temptation to name the guilty is just too hard to resist, although we should add the rider that the Tánaiste warned that it could take up to 18 months for the payback from the reforms to work through the system. That said, a half term report is still justified as the more slippage in instituting the reforms, the longer the wait for cheaper motor insurance.

So, how is it going? Well overall the Government appears to be doing all right. The Department of Enterprise Trade and Employment reckons that some 14 of the 67 recommendations have been implemented, while another 12 are well under way, but require legislation which inevitably takes a long time as it has be drafted and then be passed by the Oireachtas. Good progress has been made on another five or so, which require changes to regulations.

It is important to point out, however, that of the 67 proposed reforms, only 15 are predicted to have a direct impact on insurance costs. And when you focus in on these reforms things don't look so great. Only two of these reforms have been fully implemented.

The first is the implementation of the road safety strategy which could cut claim costs by 10 per cent. This is the responsibility of the Department of Transport. The other fully implemented recommendation is are the promotion of the rehabilitation of injured parties and it is expected to deliver a 3 per cent reduction in claims costs. The good guys in this case are the Irish Insurance Federation.

The bulk of the rest of the significant recommendations are caught up in limbo, awaiting the introduction of legislation.

By far the biggest issue is the coming into effect of the Personal Injuries Assessment Board, which could cut costs by 7.6 per cent. The PIAB will offer an alternative to litigation for establishing damages where liability is not in dispute, and is predicted to save insurers significant amounts in legal costs. The sponsoring body for the PIAB is the Tánaiste's Department of Enterprise and Employment, which says that it expects to have legislation enacted by the end of the year.

The bulk of the other recommendations requiring legislation are the responsibility of the Minister for Justice Mr McDowell. Cumulatively they could shave something in the region of 11 per cent off insurance costs.

They include things such as more significant deterrents for uninsured drivers, which could save 5 per cent on insurance costs and an overhaul of court procedures, together with more competition in the legal system. These last two measures could reduce claims costs by 2 per cent and legal costs by up to 30 per cent.

Other areas in which Minister McDowell can act to bring down insurance costs are the introduction of measures to tackle fraudulent claims such as extending the law of perjury to cover them. Plaintiffs will also have to provide proof of their lost earnings supported by the Revenue Commissioners.

The Minister for Finance, Mr McCreevy, also has a role to play, but appears to have ducked the recommendation to remove stamp duty on insurance policies (could cut 2 per cent off claims costs) while the Minister for Health, Mr Martin has said he is "not minded" to remove charges levied on people involved in motor accidents, which could cut cost by 1 per cent.

So, as we hit the half term mark, the report cards reads as follows.

Minister for Transport, Seamus Brennan: Excellent. Keep up the good work.

Tánaiste and Minister for Enterprise: Good effort , but must continue to apply her self next term.

Minister for Justice Mr McDowell: Must try harder next term. Risks failing.

Minister for Finance, Mr McCreevy and Minister for Health, Mr Martin: Fail.