Kieran Phelan (Fianna Fail)

I thank the Minister of State for coming into the House tonight. Insurance is a huge problem in the tourism industry. It is not an optional extra for those who run the industry because they cannot operate without it. While it goes without saying insurance costs are not the only reason for a relative lack of competition, it seems clear that the price of premia is a significant factor. All sectors of the industry are worried about the cost of insurance and the level of concern seems to be increasing with each passing year. These worries are not helped by the fact that, in a large proportion of cases, the increase in premia does not seem to be warranted.

The tourism market has decided to opt for a more activity-driven approach. More facilities were developed to provide a whole range of activities for tourists. As more and more opened, tourists began to flow back into the country. When one considers this, it is plain that the expansion of leisure and other activities is vitally important to the tourism industry, yet they are the very businesses being hardest hit by insurance costs. For example, I know of a local venture where the cost of insurance has gone up by 240% in the past year. This has resulted in a premium of €50,000 for a centre that is by no means large and has had no significant claims.