The Government's record on the provision of insurance was criticised by the Fine Gael spokesman on Enterprise, Trade and Employment, Mr Phil Hogan.

Inflated insurance premiums were crippling every aspect of Irish life, he claimed. "Motorists are discriminated against due to gender or age. Children cannot play in safety because those operating controlled areas cannot insure the facilities. Small firms are laying off workers because of exorbitant insurance costs. Service providers are working without insurance and putting themselves and their employees at risk." Mr Hogan added that banks were now insisting on evidence of insurance cover before giving clearance for overdrafts. He was speaking during a debate on a Fine Gael private member's motion calling on the Government to introduce measures to facilitate greater competition in the insurance market in Ireland. The House will vote on the motion tonight.

There were tales of utter misery throughout the State, he said. "A Kildare businessman, who builds custom-made kitchens, could not undertake a project to build 168 kitchens for a housing development in Cork because his insurance company exited the market without notice. Three of his employees lost their jobs." The statistics, he said, were staggering. Household insurance was up by 35 per cent, motor insurance had increased by 18 per cent, while there had been a 71 per cent increase in insurance costs for businesses.

The Tánaiste, Ms Harney, said there had been an excellent analysis of the reasons for high insurance costs, particularly by the Motor Insurance Advisory Board (MIAB).

"The focus must now be on action. Furthermore, action is required in a number of areas and across a number of Departments." She added that her Department was sponsoring a study to examine the key areas of motor, employers' liability and public liability insurance to see if there were any anti-competitive practices or constraints on competition.