Frank O'Rourke (Kildare North, Fianna Fail) | Oireachtas source

I, too, welcome this motion and support my colleague, Deputy McGrath, in the work he is doing. I refer not only to this area but also to the proposals he has brought forward in relation to motor insurance and in many other areas that affect business people and people generally. The small and medium enterprise sector is an important one in our community and economy. I welcome all of the people here this evening in the Visitors Gallery. The sector employs nearly one million people. It provides massive lifeblood for our economy, creates major employment and much activity in local areas as well as nationally. It also provides a valuable service.

However, there is a real problem. The costs for businesses increase continually and they are finding it difficult to access credit now. The banks are chasing those businesses that have performing credit to try to take that back off them. The cost of the increased rates is going out of control and getting more expensive. Business insurance has also gone up and in some cases by 20%. There are no proper reasons given and no proper explanations. I learned only this week that one excuse given by an insurance company was Storm Ophelia. That is the new reason for insurance premiums going out of control.

There is a reality here. I have spoken about it before. Insurance companies are operating in a cartel-type manner. I raised this at the Committee of Public Accounts before and I was cautioned for doing so. However, I am happy to hear so many Deputies raising the same issue and saying the same thing. We need to bring in more competition and open it up to European countries. We need to put manners on the insurance companies because there is no reason and no justification for what they are doing. Action is needed and it is needed urgently. I am calling on the Minister of State to bring action into play and deliver on this and other issues.

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