(10 years, 8 months ago)
Commons ChamberI will not give way.
Setting the payments at the right rate is crucial to the success of the Bill and the ultimate establishment of a payment scheme. The payment rate of 75% of average civil damages takes the levy right to limit of what insurers have indicated they could absorb without passing the costs on to new businesses—an absolutely crucial issue. It is the absolute maximum that would be realistic within a fixed-payment scheme.
The levy on insurers will be imposed on active employers’ liability insurers at large today, not the individual insurers who took out the premiums, who were covered in cases that come under the scheme. The scheme could be jeopardised if the levy were set disproportionately high. That could delay the introduction of the scheme, preventing the payment mechanism from being in place at the time of the peak of mesothelioma deaths, which, according to the actuaries, will be around 2015. I am sure we will debate that as we go through the Bill, but I hope that that will not detract from the importance of ensuring that it gets on to the statute book as soon as possible. As everybody in the House will understand, the scheme must strike a careful balance in making a substantial payment to eligible people while ensuring that the contribution made by the insurers is fair and not excessive. Crucially, the proposed levy rate must not be so high as to risk increased costs on business, thereby adversely affecting British businesses, which no one in the House would want.
In addition to the payment scheme and the levy, the Bill makes provision for the possibility—I stress, the possibility—of establishing a technical committee to adjudicate on making binding decisions on disputes between insurers. I think we would all prefer that to these matters being in the courts.
The Bill and the principles behind it merit the support of the whole House.
I am coming to the end of my comments.
We have no doubt that the principle of the Bill—[Interruption.] It is no good Opposition Front Benchers chuntering; they will have their opportunity to speak in a minute. Let us just get on. If the hon. Member for West Dunbartonshire (Gemma Doyle) wants to speak, as lots of Members do, she will be welcome to do so. That is why I am not giving way every five seconds.
(12 years, 9 months ago)
Commons ChamberI thank my hon. Friend for her important question. One point in having Fareham open so early is that we will be able to trial the new system early, which will mean that no centres will close before the robustness of the system is demonstrated. Should there be any blips in the system, I can assure my hon. Friend that no station will close until we have the level of resilience that we do not have today.
The Minister’s proposals mean a cut in staffing levels covering the Clyde area of 56% in comparison with a UK average cut of 33%. I see nothing in the statement that changes that. Why does the Minister think that the Clyde, which is the busiest area for call-out, should have a disproportionately higher cut in staffing?
I am sorry if I misled the hon. Lady, but Clyde will close as a co-ordination centre. It is already paired with Belfast. Belfast regularly covers the resilience and has the local knowledge that is necessary. That is why we took the decision to keep one of every pair open. I understand that it is sad for the hon. Lady, but there will be coastguards working in the Clyde area, although it will not be a co-ordination centre.