Eamon Scanlon (Sligo-Leitrim, Fianna Fail) | Oireachtas source

Irish small businesses are facing an insurance cost crisis with the potential for devastating consequences. The National Competitiveness Council has highlighted that insurance costs are one of the issues of greatest concern to businesses in the country. Many businesses, in particular small and medium enterprises, are experiencing massive increases in the order of 40% and higher in their premiums for motor, public liability and employer liability cover. This type of cost escalation is not sustainable for businesses, homeowners or individuals. If the current situation continues it will become impossible to do business in Ireland from a domestic and foreign direct investment perspective.

The significant cost increase has been borne by small businesses, resulting in job losses and non-expansion by companies. In the SME sector, which employs 920,000 people, many businesses, in particular retailers, are waiting for the Government to deal with costs, which continue to rise and show no sign of moderation. High costs make Ireland less attractive to foreign markets and this impacts on exporting sectors and drives consumers to look at other markets for cheaper goods. The Government must also set out a clear timeline and parameters for phase 2 of the cost of insurance working group, which will look at business insurance. It needs to be prioritised by the Government as lost competitiveness is a massive risk to Irish businesses. It is past time we stopped talking about our out of control insurance costs and do something about them.

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