Michael Ankers: don't cut the top-up.
No change in credit insurance
Published: 19 November, 2009
LONDON: A survey of its members by the Construction Products Association has shown that two-thirds of companies have seen no easing in the credit insurance market over the last three months.
Commenting on the survey's findings, CPA chief executive Michael Ankers, said: "The majority of companies report that they are still struggling to get any cover at all on many of their contracts.
"For those companies where credit insurance has been withdrawn altogether, the Government's top up scheme, which was considerably improved in August, is still of no value and only 6% of companies in the sample had taken advantage of this since these improvements were announced."
Mr Ankers explained that the survey also showed 40% would be likely to use the 'top up' scheme in the future when credit insurance on their contracts is partially re-instated.
"One of the major problems the industry faces is that the scheme is due to end in December, just at the time when we hope the greater stability in the market will encourage a more rapid reinstatement of some levels of cover where this has been totally withdrawn.
"As a result, nearly half the companies said it would be helpful if the Government could extend the current scheme for at least another six months until the middle of next year. We asked the Chancellor to agree to this in his pre-Budget report on 9 December."