Licensees are to face yet more red tape as the government plans to introduce spot-checks over insurance policies.
The government is rumoured to be discussing plans to extend the powers of local authorities so they can conduct checks and issue fines against licensees who are found to be without compulsory insurance.
This follows news last week that the government would not be able to deal with the problems of spiralling insurance premiums - which are forcing many licensees out of business - until the autumn. Licensees are required by law to have employers' liability and public liability insurance to cover against accidents of both employees and members of the public.
The concern for the trade is the move would place even more red tape on to licensees - many of whom are having problems getting insured, and are already struggling to deal with the large amount of government bureaucracy.
Research by the industry's Red Tape Group has revealed that licensees have already been burdened with 153 new pieces of legislation since Labour came into power six years ago.
Kate Nicholls, spokeswoman for the group, said: "We are concerned that pubs already have a string of people going in to check licensing, environmental health and health and safety. Why can't the environmental health officer check the insurance then?
"If that's the best recommendation the government can come up with when businesses are facing big increases in employers' liability insurance, it's just a real kick in the face."
David Bishop, spokesman for the Federation of Small Businesses, said: "There should be one inspector who has an understanding of all the requirements of all businesses. Pubs are asked to comply with a host of regulations and we need to reduce the burdens on publicans.
"The government needs to sort out the fundamental problems faced by publicans who cannot find insurance companies to offer them cover before being heavy-handed with them."
Tony Payne, chief executive of the Federation of Licensed Victuallers' Associations, said: "Licensees need to make sure they have the compulsory insurance. It is a warning to licensees as it could lead to fines and horrendous costs."
The Department for Work and Pensions has confirmed that it is currently discussing its enforcement proposals but says that no final decisions have been made on who will conduct the checks.
Licensees are being encouraged to let the Red Tape Group know about their concerns. Fill in the Red Tape petition at www.thepublican.com/competitions/red_tape.
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MP slams government over insurance premiums (5 June 2003)