The Department of Trade and Industry has been urged to take action over rising premiums in the construction industry.

Speaking in Parliament, Hugo Swire, MP for East Devon, called on the government to place the issue of rising costs at the top of its agenda.

Swire, speaking in the House of Commons said: "When it comes to formulating construction policy, will the Minister bear in mind the very real problems faced by many smaller companies in the construction industry as they seek to obtain employee and public liability insurance?

"When those companies can obtain insurance, they are often faced with premiums that have risen by anything between 100% and 400%. To date, the government have promised an inquiry, but the construction industry requires action. When can it expect it?"

Trade minister Nigel Griffiths defended the government's handling of the issue, saying they have held several discussions with the industry.

He said: "The Office of Fair Trading will also report on part of this matter in the spring."