asked the Minister for Social Welfare whether he is aware that on 22nd August, 1955, all the insurance companies in the State, which cover workmen's compensation, circularised building contractors intimating that they would cover contractors under the Workmen's Compensation (Amendment) Act, 1955, only on condition that an additional 35 per cent. in premium were paid in respect of wages, salaries and other earnings expended as and from 1st September, 1955; whether he is aware that this increase will drive a large number of building contractors out of business, that it will make the cost of building for private individuals prohibitive, and that it will create widespread unemployment in the building industry; and, if so, what action he proposes to take in the matter.
Ceisteanna—Questions. Oral Answers. - Workmen's Compensation Premiums.
The circular mentioned by the Deputy was issued by insurance companies to all employers who insure themselves against liability for employment injuries. I understand from the companies that the increases in premiums were necessary to cover the increased benefits conferred by the Workmen's Compensation (Amendment) Act, 1955. The increase charged by the companies is 25½ per cent. on the immediately preceding premiums.
I do not think that the increases will have the effect on the building industry which the Deputy suggests.
Is the Minister stating that, in the Government's view, the increase of 35 per cent. by the insurance companies is justified?
The Deputy is wrong. In the first place, it is not an increase of 35 per cent. on the existing premiums. The Deputy will probably remember that, after the Workmen's Compensation (Amendment) Act, 1953, there was an increase of 7½ per cent. On that 107½ per cent. there is an increase of 25½ per cent. The Bill which was passed by the Dáil in June was responsible for an increase of 25½ per cent.
Assuming, as the Minister says, the increase is a net increase of 25½ per cent. which is paid on the rates of wages applicable in the building industry, is it the Government's or the Minister's view that such an increase is justified to meet the liabilities under this Act?
I think I dealt with this aspect of it when the Bill was going through the House. I am not entirely satisfied that the premiums, as charged, are proper, but, as against what the insurance companies have been charging for workmen's compensation, I say that the 25½ per cent. now proposed to be charged is justified.