Written question asked by Lord Jones of Cheltenham (Liberal Democrat) on Tuesday, 21 October 2003, in the House of Commons. It was due for an answer on Wednesday, 29 October 2003. It was answered by Lord Browne of Ladyton (Labour) on Wednesday, 29 October 2003 on behalf of the Department for Work and Pensions.

Dept for Work and Pensions

Question: To ask the Secretary of State for Work and Pensions, what action he is taking to prevent companies from trading without appropriate liability insurance; and if he will make a statement.

Answer: Mr. Nigel Jones: To ask the Secretary of State for Work and Pensions what action he is taking to prevent companies from trading without appropriate liability insurance; and if he will make a statement. [134233] Mr. Browne: Although compliance levels remain high, all non-compliance is serious. Uninsured companies reduce the compensation available to their employees; transfer the cost of accidents to the taxpayer; and have an unlawful competitive advantage over their legitimate competitors. The Department is taking a number of actions to re-inforce compliance in the second stage of its review of Employers' Liability Compulsory Insurance (ELCI). These include developing an enforcement database and issuing supplementary guidance on procurement in the public sector to make the confirmation of contractor and subcontractor compliance a more explicit part of the tendering process. We will report in Autumn on the progress that has been made and any further steps we intend to take.

Secondary information