Compulsory Insurance Won't Stop Industry Polluting May03
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.
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.
environmental insurance market is underdeveloped, with uncertain risks.
Compulsory financial security is opposed by the insurance industry
and even the British Government.
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."