Sinn Féin and Dundalk business call on Minister to curb insurance threat to Louth jobs

Yesterday the owners of Pelican Promotions, Mandy Fee and Shane Mc Bride, brought their insurance coverage fight to Minister of State Michael D’Arcy - just days before their company could be forced to close due to the fact that there are no insurance companies in operating in Ireland to renew their policy.  

The meeting in the Department of Finance was organised by Sinn Féin TD for Louth Gerry Adams and Cllr Ruairi Ó Murchú. 

The crisis facing Pelican Promotions and other similar companies around the country came to a head when Leisure Insurance UK decided it would not be renewing insurance for any policyholders in Southern Ireland. 

Speaking after the meeting Mandy said: “We told Minister D’Arcy that our business will be forced to close its doors as our policy is up for renewal on August 13. This means 36 full and part-time jobs may be lost, as well as a knock-on effect for 160 people around the country who work as Marquee Erectors, Event Teams, Entertainers, Stiltwalkers, and Magicians. Not to mention the support businesses from Stage and Lighting, Caterers, Power & fencing Suppliers, PR and Event staff and Health & Safety officers.

"There are hundreds of small businesses like us facing the same issue when their policies come up for renewal. This crisis also affects Petting Farms, Children’s Dance Groups, Summer Camps, Adventure Centre’s, Festivals, Walking Groups, Hotels and Nightclubs nationwide.

“Both Shane and myself were grateful to have the opportunity to share our concerns with the Minister around the need for regulation of the sector, the excessive claim culture, and the immediate crisis facing Pelican Promotions and others. The Minister and his officials are aware of the crisis, and its impact on local economies, jobs and tourism and must act to restructure the insurance sector urgently. 

“Pelican Promotions is actually one of the safest companies in the market and haven’t had a claim paid out against us since our foundation in 1991, we have stringent health and safety policy in place - yet we can’t get insurance!

Shane outlined the need for other companies, politicians and the public to show their support, and to keep the pressure on the Irish government to hold Insurance Providers, Brokers & Underwriters to account.

He said: “We have gotten great support from the public and from people we have worked with over many years. We are looking at every possible angle to keep our business afloat, we are giving it our all.

“Mandy and I are committed to keeping all full-time staff on in the hope the issue can be resolved. We are asking all our local public for support to help us and keep the pressure on the Government to urgently fix what is a broken insurance sector."

Mandy and Shane concluded: “We are extremely grateful to Gerry Adams TD, Declan Breathnach TD, Fergus O’Dowd TD, Peter Fitzpatrick TD and Councillors Ruairí O’Murchu, Maria Doyle and Meave Yore and the media for their continued support."

Sinn Féin representatives call on Minister to curb insurance threat to Louth jobs

The Sinn Féin representatives who attended the meeting outlined the following to the Minister:  

·        The government should tell insurers that if they don’t act, the State will.

·        The State must be ready to provide guarantees or other assistance to certain sectors help weather this storm.

·        In the longer run, the government must look to other solutions to this type of market failure through a State company or a genuine EU wide insurance market. 

·        The government should support Pearse Doherty’s Consumer Insurance Contracts Bill - which is designed to bring the insurance industry to heel and reform the law in respect of insurance contracts. 

Speaking after the meeting Gerry Adams said that the Sinn Féin representatives raised two specific issues with the Minister.

“Firstly, we asked the Minister what plans the government has to protect jobs threatened by the decision of British insurers to withdraw from the Irish market. Some estimates put the number of jobs at risk across the state as high as 4,500," Mr Adams said, 

"Secondly, and following An Taoiseach Leo Varadkar’s statement this week that he has given the insurance companies six months to bring down their premium prices, I asked the Minister what sanctions the government intends taking if insurance companies do not lower their premiums.

"The recent decision by AXA XL, the underwriter of Leisure Insure, not to offer cover to Irish company’s means that Pelican Promotions have been unable to renew their public liability insurance which expires on August 13, effectively forcing the business to close. 

"Leisure Insure was one of the last insurers covering event companies, bouncy castle operators, leisure centres, yoga classes, soccer teachers, drama classes, some play centres and a large number of leisure companies.

"Operators in the leisure sector largely rely on British insurers as Irish-based insurers cite large losses on what is called liability insurance. British companies are now using the same excuse.

"I urged the Minister to make it clear to Insurance companies that if they don’t act, the State will.

"The State must also be ready to provide guarantees or other assistance to certain sectors to help weather this storm.

In the longer run, we must look to other solutions to this type of market failure through a State company or a genuine EU wide insurance market." 

Speaking following the meeting Cllr Ó Murchú said: "€227 million profits were made by the insurance industry last year. This is a 1,300% increase in their profits. Government policy must now reflect this reality and any reforms that benefit the industry must be matched by clear verifiable commitments from them to reduce premiums. 

"In May An Taoiseach Leo Varadkar signed the money message for Pearse Doherty’s Consumer Insurance Contracts Bill - which is designed to bring the insurance industry to heel and reform the law in respect of insurance contracts. On July 11 the Bill passed Committee Stage in the Finance Committee.

"The Bill is pro-consumer and pro-transparency and is based on a Law Reform Commission Report. The government should support Teachta Doherty’s Bill and use it as a vehicle to promote greater transparency."