Motorists set to pay for fire service reforms

Barrie Clement,Nigel Morris
Tuesday 17 December 2002 01:00 GMT
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Drivers could face massive increases in policy premiums under plans revealed yesterday to charge insurance companies for the attendance of firefighters at road crashes.

Sweeping changes to the fire service proposed by the Bain report – and accepted last night by the Government – include a plan to make insurers contribute to the costs of motoring accidents, on top of charges already levied by the National Health Service.

Premiums soared by between 15 and 20 per cent two years ago when the NHS began charging for paramedic services at the roadside, and there could be rises of a similar order if the fire service follows suit. The present average premium for comprehensive vehicle cover is £687, some 4.5 per cent up on last year.

A spokesman for The Association of British Insurers said: "We need to see the details in the report, but the reality is that any additional costs for which insurers are liable could impact on the cost of insurance. We are talking about an industry whose expenses are more than its premium income. Motor insurance is not a particularly profitable sector for the industry."

As part of a raft of radical reforms suggested by Sir George Bain in his 160-page report, companies should also be charged for false alarms and for consultations on safety.

The report said substantial savings could be made from modernising the service and not replacing every fireman and woman who retired. Natural wastage ran at between 4 per cent and 5 per cent each year and the report said savings could be made if half the posts which became vacant every year were not filled.

This could involve about 3,500 job losses over three years, well short of the 10,000 raised by Mr Prescott last month, but Sir George said there was no need for any compulsory redundancies.

The Fire Brigades Union boycotted the Bain review and described its findings as "irrelevant", preferring to concentrate on peace talks that have started at the conciliation service Acas.

Mr Prescott brushed aside the opposition of firefighters and vowed to press ahead with the biggest shake-up of the service for more than half a century. The Deputy Prime Minister warned: "Change is on its way and the FBU can't set its face against that. It is time for them to start talking seriously."Mr Prescott said the Government was prepared to endorse Sir George's recommended pay increase of 11.3 per cent over two years, provided the FBU was prepared to modernise.

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