I thank the Chair for allowing me to raise this important matter and the Minister of State for attending.
A constituent of mine has approached me in the past 24 hours with regard to renewal notices he received relating to his insurance for a small boutique shop and office. In 2001 the cost of public liability insurance, employer's liability insurance and insurance of premises and contents was €667, a reasonable cost for the type of holding involved. Unfortunately, the renewal notice he received yesterday demanded a premium of €13,355, an increase of 2,000%. That means that where this constituent comes from two small businesses are going to close because no one could absorb that sort of cost. The two occupants of the premises cannot do so, nor can the owner. That state of affairs is reflected right across the commercial and business sector.
Insurance companies are recouping their losses arising from the events of 11 September which they are using as the excuse to facilitate financial gain. The amazing thing is that they have reduced the liability they may incur by removing from the grounds for claiming, among others, an act of terrorism. By reducing their risk they have increased their profit margin, as a result of which businesses are going to go to the wall.
Small rural community centres which run social events such as Christmas parties, especially for senior citizens, will not be able to function effectively or facilitate old and young in the community because they have to feed avaricious demands for expensive public liability insurance. In the case of my local hall, which serves 300, the cost of insurance has increased by 33%.
What is happening in the insurance industry is unbelievable and the House is failing to address the issue. I ask the Minister of State if we are going to allow insurance companies to close down the small businesses that are the heart and soul of our villages, while damaging their infrastructure by closing community halls. This is a very serious matter and I ask the Minister of State to tell me what the Government and the Houses of the Oireachtas can do about it.