Economy Minister Ian Pearson has welcomed the recent announcement by the Chancellor, Gordon Brown that he is to undertake a formal review of the operation of Employer’s Liability Compulsory Insurance.

Mr Pearson said he had been conscious for some time that the hardening insurance market "has been putting severe pressures on businesses across the board".

He added: “These pressures have been particularly acute for Small and Medium Enterprises (SMEs). Many face huge increases in premiums which in some cases have been as much as several hundred percent. I am therefore very pleased that the review is being conducted."

However, the Minister warned: “We must not lose sight of the fact that a fundamental issue here is about preventing the accidents that lead to insurance claims.

“What is clear is that effective management of workplace health and safety reduces operating costs, improves profitability and enhances competitiveness.”

The Minister also said that insurance costs were only part of the equation as far as health and safety failures were concerned. He quoted from a recent study, which estimated that the total cost of health and safety at work failures to the Northern Ireland economy, including insurance costs, was approaching £500 million per year.

He concluded: “I fully support the HSENI strategy on the costs due to health and safety failures and the work they are doing with the local insurance industry in driving home the message that managing the health and safety risk is a key investment.”

(MB)