HC Deb 29 October 2003 vol 412 cc301-2W
Mr. Bellingham

To ask the Secretary of State for Work and Pensions what plans he has to require, as part of Employers Liability Compulsory Insurance, main contractors to bear responsibility for any subcontractors that they employ. [132842]

Mr. Browne

For the overwhelming majority of employers it is a legal requirement to have Employers' Liability Compulsory Insurance (ELCI).

In support of this, model conditions of contract in guidance on procurement in the public sector expect contractors to comply with the requirement to have

Projected expenditure on winter fuel payments, free television licences for the over 75s, and Christmas bonus for pensioners
£ million, 2003–04 prices
1997–98 2002–03 2010–11 2020–21 2030–31 2040–41 2050–51
Winter fuel payments 227 1,758 1,808 1,608 1,476 1,194 962
Free TV licences 0 384 469 636 903 1,231 1,477
Christmas bonus for pensioners 131 113 102 81 74 62 48

(ELCI) and provide that contractors shall be responsible for the acts and omissions of their sub-contractors as though they were their own.

However the Government intends to issue supplementary guidance with reference to ELCI, to make the confirmation of contractor and subcontractor compliance a more explicit part of the tendering process.

We would encourage a similar standard in the private sector.

Mr. Bellingham

To ask the Secretary of State for Work and Pensions what plans he has to issue guidance to the insurance industry advising that companies with proven good records in health and safety should have that reflected in lower insurance premiums. [132845]

Mr. Browne

The Association of British Insurers (A BI) recently announced an initiative "Making the Market Work" under which an ABI/lnsurer assessment committee will advise trade associations on their health and safety schemes taking into account best practice features that employers' liability compulsory insurance (ELCI) insurers expect to see in place.

Government are also working with the Health and Safety Executive (HSE) to link its 'risk profiling' tools to insurers underwriting decisions.

These initiatives are a first step towards ensuring that insurance premiums better reflect the health and safety records of companies.

Mr. Bellingham

To ask the Secretary of State for Work and Pensions if he will include in his Department's second report into employers liability compulsory insurance a study of(a) the administrative and legal costs incurred in settling claims and (b) their impact on premiums. [132849]

Mr. Browne

The Department included a study of the administrative and legal costs incurred in settling claims and their impact on premiums in the First Stage Report of the Review of Employers' Liability Compulsory Insurance published on 3 June 2003. A copy of this is available in the Library. The Department's second stage report to be published in the autumn will not repeat this analysis but will set out the further actions that we propose to take. A copy of this will also be placed in the Library of the House on publication.