"In their reformed insurance package released on March 17^th of this year, the Premier and Minister announced that government was unable to move forward with the elimination of rating discrimination based on age, sex and marital status," said Sweeney. "I want consumers to know today that the only reason these savings were not attainable is the accommodation by government of lawyers and insurance companies.

"Had the Conservative government under Danny Williams moved forward with restrictions on payouts for pain and suffering, 30% overall savings could be achieved, even more for young drivers. Instead, this government has catered to their corporate friends at the expense of consumers who deserve savings."

The Liberal MHA also raised the issue of taxes charged on insurance. There is an insurance premium tax of 5% built into insurance premiums in this province and most others. The government of Newfoundland and Labrador charges an additional 15% provincial tax.

"This government refuses to deal with payouts by insurance companies that are causing unnecessarily high rates. If they were serious about reducing rates, they would also look at phasing out the 15% provincial tax on insurance. This is not HST, it is a tax grab by the provincial government that is creating a windfall due to increasing insurance rates. Consumers have to know that this is a tax specific to Newfoundland and Labrador and is not charged in other provinces and territories."

The PC government was expected to table insurance legislation last Monday. To date, this legislation has not been tabled and the Minister of Government Services has given no reason for the delay. Most consumers have received insurance renewals and quotes based on new, higher rates that have been approved since the reform initiatives were first announced last August.