Dáil Éireann díospóireacht -
Tuesday, 18 Jun 2002

Vol. 553 No. 2

Written Answers. - Employer Insurance Costs.

Cecilia Keaveney

Ceist:

110 Cecilia Keaveney asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the level of difficulty currently being experienced by small and medium sized businesses due to the substantial rise in insurance costs; the options available to address this issue to ensure such businesses are not forced to close; and if she will make a statement on the matter. [13583/02]

Kathleen Lynch

Ceist:

126 Ms Lynch asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in regard to the commitment given in An Agreed Programme for Government, the specific steps which will be taken to limit the cost of public liability insurance on businesses; and if she will make a statement on the matter. [13653/02]

Trevor Sargent

Ceist:

127 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures which she will introduce to address the concerns of the Irish Small and Medium Enterprises Association Limited in relation to the dramatic increases in insurance costs in the past two years. [13700/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 110, 126 and 127 together.

I am very much aware of the substantial increases in insurance premiums that many businesses are facing and that it is undermining enterprise and job creation.

The pricing and underwriting of insurance is a matter for insurance companies. EU law prevents me from intervening in relation to the matter of premium levels or in respect of what risks these companies are prepared to underwrite. Insurers make decisions on provision of cover based on their assessment of risk.

The Agreed Programme for Government contains a series of measures aimed at tackling the high cost of insurance, particularly motor and employer liability insurance. These measures include the implementation of the 67 recommendations of the MIAB report, many of which have the potential to impact favourably on employer liability insurance as well; and the establishment of the personal injuries assessment board.

The social partners have committed themselves in recent partnership proposals to improving health and safety standards in the workplace. As part of this commitment, the workplace safety group, which enjoys the support of the HSA and social partners, is promoting a workplace safety code on safe working and accident prevention. The objectives are to reduce workplace accidents, to encourage injured workers to return at the earliest possible date to the workplace and to improve claims handling procedures, thus reducing insurance costs. The establishment of an office to promote workplace safety with a chief executive and administrative assistant has been proposed. My Department will be involved in providing financial and other assistance towards getting this initiative off the ground.

Complementary to the measures foreseen by the Government, discussions have taken place with ISME, IBEC, the Irish Insurance Federation and other bodies and enterprises concerning the availability and cost of insurance. I encourage them to develop, in consultation with their clients, innovative strategies for controlling risk.