10-05-04

Rising insurance costs threaten community events - Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, today tabled a motion to Parliament, calling on the Government to protect community groups from rocketing insurance premiums.

Several groups have contacted Mr Barrett over the increase in the cost of public liability insurance for their events.  In one instance, the Corstorphine Fair got a quote of £14,500 from the same insurance company that quoted them just £1,000 two years ago, a staggering increase of 1500%.

Other insurance companies quoted similar premiums, advising that the main reason for the increases were due to the effects of September 11th. The Fair has finally accepted a more reasonable quotation to stage the event. However the Committee is concerned about further increases in years to come.

Mr Barrett has now tabled a motion to parliament, calling for Government action to ensure the future of important community events are not put at risk.

Commenting on the situation, John Barrett said:

"Although the insurance market got turned upside down after September 11th, I fail to see how it justifies such a massive increase in Public Liability Insurance premiums for community run events.  We are getting to the stage where insurance costs are swallowing up much of the money raised by volunteers, money which should be spent on making local events a success.

"The Government has already been looking into the impact of insurance costs on businesses. They now need to widen this out to include the impact on community organisations. Insurance company profits can not and must not come before our local community events."

ENDS

Notes to Editors

• John Barrett has tabled the following Early Day Motion

That this House Notes with concern the massive increase in the cost of public liability insurance over the last three years and the negative impact this is having on traditional community events throughout the country; notes that in one case in Edinburgh, an insurance quote of £14,500 was given to the Corstorphine Fair from the same company that quoted just £1,000 two years ago; recognises that the cost of insurance is now jeopardising the future of many fundraising and community events and rejects the main excuse  put forward by insurance companies that the increased premiums are required  because of the rise of international terrorism; therefore calls on the Government to look into this issue as a matter of urgency to ensure these  events, which are so important to our local communities, are able to  continue. 

• The Corstorphine Fair takes place on Saturday June 5th, 11am - 4pm.