The Irish motorcycle industry is being hit by rising insurance costs. Rapidly declining sales are cutting employment in the industry. Patricia Weston reports.
"The industry's in a bad old state," says Denis Maw, of Celtic Motorcycles in Dublin. "Sales are down simply because of exorbitant insurance. Bike shops have to let staff go. Two and a half years ago I had four people - now there's only me and a part-time guy working in my shop."
Stephen Breure of the Scooter Store says his business is in serious jeopardy - "My shop is gone down the drain and I may have to pack it in. I was selling around 1,200 scooters in the first year of business, now I'd be lucky if I sell 200." He also believes insurance costs are to blame: "It's gone up ridiculously - twice last year, first 25 per cent, then 35 per cent."
Wicklow bike dealer Cormac Conroy says: "An 18-year-old on a provisional licence would be charged €8,571 for fully comprehensive on a Honda 50." Lee Calvan from Scooter Island agrees, but thinks that "businesses are whinging too much about cost".
"The bike industry is dead and insurance companies are making a lot of money, but there are other factors such as provisional licences, pillion passenger risk and lack of training and the insurance reflects that," he adds.
A Department of Transport spokesperson said: "A new agency is being established to oversee all driving issues, including those affecting motorcyclists, such as provisional licences, training and the bike test". The Bill for the establishment of this agency was published last week.
The industry feels that the Government doesn't care about their businesses. "It does nothing to help the motorcycle industry except give us bad press," says Louise Barrett of Mountjoy Motorcycles. "They say nothing about all the bike runs and charity work bikers do." Conroy refuses to "sit around and wait for the Government". He's a member of a bike dealers forum formed to tackle the insurance issue. "Around 20 bike shops have closed in the past year," he says. "Insurance has to come down, and it will come down once it's tackled."
Recently the European Court ruled that insurance companies must pay damages to pillion passengers in accidents, even where drivers had provisional licences and were breaking the law by carrying a passenger. This ruling puts up premiums.
Axa Insurance recently took over the Aon Bikecare Scheme from Hibernian Insurance and, with Carole Nash Insurance, provide insurance. "Only two companies insure bikers in this country - which is why it's so expensive," says Conroy.
Axa is finalising measures to reduce premiums for bikers. According to its Paul Maloney, " sales are decreasing while insurance costs are rising. It's in our interest to reduce costs - we want the market to grow, so we're putting together a training package for riders, and a reward system."