Rising insurance costs threaten Community events

3.14.22pm GMT Wed 8th Dec 2004

Edinburgh West Liberal Democrats John Barrett MP and Margaret Smith MSP have joined forces to help community events threatened by rocketing insurance costs.

Many local groups have complained about the increasing costs of public liability insurance for their events. In one instance, the Corstorphine Fair in Edinburgh got a quote of £14,500 from the same insurance company that quoted them just £1,000 two years earlier, a staggering increase of 1,500%.

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.

John Barrett and Margaret Smith have tabled motions to the House of Commons and the Scottish Parliament, which call on the Scottish Executive and UK Government to take action to ensure the future of important community events are not put at risk.

Commenting, 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."

Margaret Smith MSP added,

"Just last night, I attended an excellent Christmas community event in Corstorphine, which was attended by over 1,000 people. It would be awful if the future of such events were put at risk for the sake of insurance company profits.

"Work has already been undertaken to help businesses with the increasing costs of their liability insurance. This review must be widened so that the local events, which are so important to communities across Scotland, are not placed in jeopardy."

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 a number of fundraising and community events, including Christmas events; rejects the main excuse put forward by insurance companies that the increased premiums are required because of the rise in international terrorism; and therefore calls on the Government to look into this issue as a matter of urgency to ensure these events, which are so important to local communities, are able to continue.

Margaret Smith has tabled the following motion:

That the Parliament notes with concern the massive increase in the cost of public liability insurance over the last three years and the negative impact that 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 a number of fundraising and community events, including Christmas events, and rejects the main excuse put forward by insurance companies that the increased premiums are required because of the rise of international terrorism, and therefore calls on the Scottish Executive to look into this issue as a matter of urgency to ensure that these events, which are so important to local communities, are able to continue.