Compulsory Insurance Won't Stop Industry Polluting May03

Local Euro MP, Bashir Khanbhai, has warned that the introduction of compulsory environmental liability insurance, as passed this week by the European Parliament, will do little to help the environment but will place huge costs on local industry. 

Compulsory insurance will undoubtedly result in a fall in profits and will put jobs at risk as UK industry is forced to pay as much as £1.8bn every year to meet the cost of the premiums that European law will now insist upon.

The environmental insurance market is underdeveloped, with uncertain risks.  Compulsory financial security is opposed by the insurance industry and even the British Government.

Commenting on his concerns, Mr. Khanbhai said:

“These new rules will do little to help the environment but will instead force huge costs on industry and damage British interests. 

This legislation will not help the environment. We want to stop industry polluting, not put measures in place which mean that the mess is paid for at a later date.

There can only be two possible outcomes - either profits will fall and local jobs will be lost, or prices will rise and local consumers will foot the bill. Neither outcome is acceptable."