U-TURN ON RECOVERY OF NHS COST FROM BUSINESS INSURANCE - COTTER

11.20.17am BST (GMT +0100) Tue 10th Jun 2003

Government plans to recover NHS costs from Employers' Liability Compulsory Insurance (ELCI) have been put on hold due to uncertainty in the insurance system.

In answers to Brian Cotter MP, Liberal Democrat Small Business Spokesman, the DTI Minister Nigel Griffiths said provisions within Health and Social Care Bill on NHS cost recovery would mow not be implemented until the Government's work on ELCI had been completed.

Mr Cotter said that the Government has exhibited a lack of intellectual rigour by proposing new laws before assessing their effect on Britain's business community.

Mr. Cotter said: "Labour cannot adopt a 'damn the consequences' approach to legislation that could increase insurance premium costs to British business by as much as 8% according to an Association of British Insurers report."

"The Government's rethink is welcome, but new laws cannot be adopted on an act now, think later basis. The NHS Charges provisions in the Health and Social Care Bill should be scrapped, not just delayed."

"ENDS"

"Notes to Editors: HC Deb Thursday 5 June 2003"

"Brian Cotter (Weston-super-Mare) : To ask the Secretary of State for Trade and Industry, What discussions she has had with the Department of Health and Social Care (Community Health and Standards) Bill on insurance costs for small businesses."

"Nigel Griffiths: I know that businesses and business organisations are concerned about the possible impact on insurance costs of the Health and Social Care Bill's provisions on NHS cost recovery. I have represented these concerns to the Department of Health, and as a result the Government has decided that the provisions in the Bill will not be commenced before the outcome of further work on the Employers' Liability Insurance system is known.