Joe Costello (Dublin Central, Labour) | Oireachtas source

I thank the Ceann Comhairle for the opportunity to discuss this important issue. This problem has come out of the blue. Supervisors of community employment schemes are discovering when renewing insurance premiums that the cost of insurance has increased by exorbitant sums. Some have been quoted a threefold increase in the cost of insurance, which is unprecedented. In addition, no indication is being given for the reasons these increases are being introduced at this time.

Community employment schemes employ approximately 23,000 people nationwide. Increases in insurance premiums have become a feature of community employment schemes in the north inner city of Dublin. These increases are of major concern to stand-alone community employment schemes which do not have the wherewithal to pay them, whereas other schemes engaged in a broad area of activity may be able to soak up the increase.

The materials grant provides the funding used to pay insurance premiums. With the allocation of materials grants for 2015 complete, it is not expected that the funding will be increased or extended to cover the unexpected increases in insurance costs that are coming on stream. Certain community employment schemes are finding that they do not have the wherewithal to pay the premium.

I am aware that the Minister of State, Deputy Kevin Humphreys, is au fait with the issues involved. Allianz is the predominant company engaged in quoting insurance for community employment schemes, at least in the area I represent. This means competition is limited. The insurance industry should be consulted on this matter with a view to ensuring there is greater competition in this area. The Department must engage with the insurance companies to determine the grounds on which a threefold increase in premiums is being sought. To cite one example, the cost of insurance for the Dublin Adult Learning Centre, of which I am a director, has increased from €1,250 to €3,750 per annum. This quote came completely out of the blue. The centre provides schemes which have never lodged claims against the insurance industry. It is not a question of some bad claims being made and the company seeking to recoup some of the expenditure it has made. For this reason, it will be necessary to determine from Allianz the reason for the sudden increase in insurance premiums.

Will it be possible in the short term for the Department to meet some of the additional insurance costs being incurred by community employment schemes? This could be done by extending the materials grant to address the imminent problems a number of schemes are facing.

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