More than 20 per cent of small businesses in Northern Ireland face closure because of the soaring costs of insurance, it was claimed today.
The Federation of Small Businesses (FSB) said a survey of members in the province showed the insurance crisis was having a negative impact on 70 per cent of its members' businesses.
It warned the crisis was eating away at the very heart of the local economy and had the capacity to cripple it.
The survey showed:
- 21 per cent of businesses facing closure
- 5 per cent have had to make staff redundant
- 30 per cent could not grow or expand their businesses.
It also found that 99 per cent of small business owners surveyed believed the British government was not doing enough to deal with the insurance crisis.
The FSB called on Northern Ireland Enterprise, Trade and Investment Minister Mr Ian Pearson to immediately set up a taskforce to tackle the problem.
Speaking at the launch of the survey at Stormont Parliament Buildings last night, Mr Wilfred Mitchell, FSB Policy Chairman, said: "How many more surveys and evidence must we produce before the Government wakes up to the reality of the insurance crisis?"
He added: "99 per cent of small owners believe that the government is not doing enough - that is a damning indictment of the government's failure to tackle this issue."
Research findings confirmed predictions in their last survey - that there was no justification for the level of increases, he said.