The Department of Trade and Industry (DTI) is focusing on the construction sector in its investigation into the liability crisis.

Biba this week met representatives from Davis Langdon Consultancy …

The Department of Trade and Industry (DTI) is focusing on the construction sector in its investigation into the liability crisis.

Biba this week met representatives from Davis Langdon Consultancy (DLC), which has been appointed by the DTI’s construction sector unit to investigate the issue.

It is understood that DLC will collect data on the capacity crisis from the industry.

Biba technical manager Peter Staddon said that Biba has issued a questionnaire to find out more.

Meanwhile, the Department for Work and Pensions (DWP) has rejected suggestions that its employers’ liability (EL) review will duplicate a concurrent Office of Fair Trading (OFT) investigation.

The OFT announced two weeks ago that it would investigate the liability market, with a result due to be published in spring 2003.

The DWP announced its own EL review last week. Consultation on its review will close on 17 February, with a report expected soon after.

Critics have suggested that two reviews were overkill.

However, a DWP spokeswoman said the reviews complemented, rather than crossed, each other.

“The OFT investigation is much more wide ranging and will feed into our review,” she said.

The OFT and DWP have discussed their terms of reference and will stay in contact throughout the reviews.

A team of workers from the DWP, Treasury, DTI and Lord Chancellor’s Department will do the DWP review.

It will take into account EL’s relevance to state benefits, assess the scale, nature and longevity of current difficulties in the market and make recommendations to Work Minister Nick Brown on any reforms needed.

Brown said the DWP would continue to “work closely with insurers, brokers and businesses to ease the existing pressure in the meantime”.

But, following questioning in the House of Commons on Monday, Economic Secretary John Healey said the government would not provide temporary assistance.

The ABI welcomed the review’s scope because it addressed “underlying issues” of the lack of capacity. “There’s a need to explore the benefits and costs of no-fault compensation and the practical implications of separating the funding of the compensation system for workplace accidents and occupational diseases,” general insurance head John Parker said.

Biba chief executive Mike Williams encouraged all stakeholders to participate in the review.

Engineering Employers’ Federation (EEF) health and safety head Gary Booton said the government’s £300m IPT windfall should be used to fund health and safety programmes in small firms or for a reinsurance pool.

  • If you can help with the DTI study, please contact Biba’s Peter Staddon ( staddonp@biba.org.uk )

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