The Tánaiste Ms Harney has announced the introduction of new measure designed to cut insurance costs by 31 per cent.
Speaking at a press conference in Dublin to unveil the Motor Insurance Advisory Board Action Plan, she gave no indication of any obligation by insurance companies to pass the reduction on to consumers.
However, she said that where reductions were not passed on, the Government would take a close look at the issue. Although she did not specify what action may be taken, she was adamant costs for the consumer would be reduced.
"Insurance costs are a matter of major concern for consumers and for business alike," Ms Harney said.
"Jobs are being lost because of the high cost of insurance and, indeed, in many cases, because of the unavailability of certain types of insurance.
"That situation cannot continue and since coming back into Government in the summer I have made reform of the insurance market my number one political priority. Consumer's deserve a better deal and I am determined to see that they get it."
She added that she believed the way to reducing insurance costs was competition and that for real competition, the market needed new players.
That, she said, would not happen until the market had been reformed, and that she the MIAB Action Plan would be the first step in that reform.
Under the slogan "Driving Insurance Reform", the package of measures announced by the Tánaiste includes.
The immediate establishment of a Personal Injuries Assessment Board on an interim basis. The Board will be chaired by Ms Dorothea Dowling, author of the recent MIAB report on the motor insurance industry.
Priority drafting of legislation to establish the PIAB on a statutory footing.
Publication of the Report of the PIAB Implementation Group.
Publication of the Action Plan for the implementation of the recommendations of the Motor Insurance Advisory Board(MIAB). While the MIAB was essentially concerned with motor insurance, the recommendations also relate to other forms of insurance and to public and employer's liability in particular.
Consisting of 67 recommendations, of the MIAB plan identifies the stakeholder responsible for delivery of each recommendation, a statement of the time frame for implementation and a projection of the anticipated impact on insurance costs.
It also includes measures aimed at improving court procedures, providing greater information to the consumer and implementing and enforcing of the Road Traffic Acts.
Despite these measures, however, Ms Harney said that it was up to the insurance industry itself to implement the new measures.
She also issued assurances that the structure of the new Personal Injuries Assesment Board, once established, would encourage people to accept its recommendations despite the fact that its recommendations were not binding on any party in any case.
"I must underline, however, that the most crucial aspect of this programme will be the response of the insurance industry itself," she said.
"I have said before and I will repeat now that the acid test will be the impact that this package of measures will have on insurance premiums and on the availability of insurance.
" . . .There is an obligation on the industry to ensure that this translates into significant reductions in premiums to consumers."