Apologies, Mr Deputy Speaker. I was not sure whether my colleague had indicated that he wished to speak. It is fine.

I thank the Members who have spoken today for their engagement. I will address some of the points that were raised during the discussion, particularly those about the cost of insurance premiums in Northern Ireland, which, we all recognise, is an issue and was of concern to the Committee.

Many factors contribute to insurance premium costs, and the discount rate is just one of them. My Department is not in a position to assess the extent to which the discount rate affects the cost of insurance; that is a matter for insurers. Irrespective of that, however, the legally established principle of 100% compensation means that the impact on insurance costs cannot be taken into account in how the rate is set. As a matter of law, claimants are entitled to be fully compensated, and that is the only consideration that we can take into account in that regard. I am not in a position to comment authoritatively on the detail of insurance costs or to speculate on the extent to which the discount rate affects the cost of insurance locally, but it is common knowledge that a number of factors contribute to the premium costs. The discount rate is one such factor, but the following all make a contribution to the overall picture: the number and nature of thefts here; levels of fraud and uninsured driving; the number and nature of road traffic accidents; the make and model of cars; road safety; road infrastructure; the cost of repairs; the levels of damages awards; the number of new and novice drivers; and the insurance premium tax rate.

For historical reasons, general damages for pain and suffering, for example, also tend to be higher in Northern Ireland than they are in other jurisdictions. That is because the assessment of damages in Northern Ireland was in the hands of juries until about 1987. That may be a reason that insurance costs in Northern Ireland are slightly higher, but, again, that is not relevant specifically to the discount rate. The discount rate is applied only to special damages, which are measurable financial costs and losses. It is also worth noting that the guidance on general damages has been updated recently in England and Wales and separately in Northern Ireland and confirms continuing differences between the guidance on the level of general damages awards between jurisdictions. If we look at house insurance, for example, on which the discount rate has no impact, we see that it is also higher in Northern Ireland than it is in other regions. It is therefore not the discount rate in and of itself that is the only determining factor, although it may contribute in some places.

The regulations will ensure that the personal injury discount rate for Northern Ireland, when set by the Government Actuary later this year, will continue to give effect to the legal principle of 100% compensation and therefore be fair to claimants and defendants.

Question put and agreed to. Resolved:

That the draft Damages (Process for Setting Rate of Return) Regulations (Northern Ireland) 2024 be approved.