The Government's record on the insurance industry was strongly criticised by Labour spokesman on enterprise, trade and employment, Mr Pat Rabbitte.

He said people could not understand the "inordinate delay" in the settlement of cases. "What are the obstacles in the way of early settlement? Would such delays be tolerated in any other walk of life? To what extent is the operation of the courts responsible?

"To what extent does the insurance industry deliberately contrive such long delays in order to get the benefit of investment income? Why does it take a year on average merely to deliver a defence? Why does there continue to be a lack of transparency in the figures published by the insurance industry?"

Mr Rabbitte was supporting a Labour private members' motion calling for reform of the industry.