13/11/2011 The Politics Show Yorkshire and Lincolnshire

On the Politics Show in the North: Why are we paying so much for car

insurance? MPs call for a crackdown on ambulance chasing claim firms.

Apology for the loss of subtitles for 1883 seconds

And claims that many councils are Welcome to The Politics Show for

Yorkshire and Lincolnshire. Coming A high price of car insurance in

the north, while MPs are calling for a crackdown on ambulance

chasing claim firms and tougher penalties for uninsured drivers.

And true grit, we discovered just how already we are for a big freeze.

And even more pot holes. Where has the money gone to fill them in?

We pay insurance to protect us in the unfortunate event of cars

ending up like this. At least most of us do. In a moment, we will her

up -- here from the Lincolnshire MP who has his own personal reasons 14

tougher penalties for uninsured drivers. The Commons debated this

this week, and we have been finding out why motorists in one

Yorkshire's City pay the highest premiums in the country put up this

is the only ignition key Glen Warne uses this day, he used to have a

car but the bike is nowhere near as useful to him but it has one major

advantage. It does not need motor insurance to

take it on the road. I started off a few years ago at �500, I got one

point on my licence, never had an accident. I just got basically told

that due to my criteria, the closest quote we could get was

�2,400. Glenn's problem is where he lives. Shipley has a Bradford

postcode, and as an experiment, he made an experiment from where he

works in Leeds. The result, 80% cheaper. Glenn's car is now in a

scrapyard just down the road from his home, as are an increasing

number, priced off the road by a huge insurance quotes. So many

vehicles were turning up in car graveyards like this that the

insurance companies started doing some academic research. Bay potted

which part of the countries were paying out far more in insurance

claims than the rest of the country, and it was Bradford and Keith leap

that showed the highest levels. They then plotted which areas had

the highest numbers of specialist claims management companies. The

two maps are virtually identical. The research by the independent

Institute of Actuaries shows it is not the cost of damage to vehicles

which is rising, but a huge increase in the number of claims

for physical injuries to drivers and passengers. In the Bradford

postcode, rates over the last two years for new business for motor

insurance have doubled. If we look at the identity of claims

management companies in the Bradford postcode, it is one of the

highest in the UK, three times the national average. This does not

prove categorically that claims management companies are causing an

increase in injury claims, but it is a strong case that it might be

that. It is more likely to be that than people mysteriously been more

prone for bodily injury in a certain part of the country. This

is one of dozens in West Yorkshire. They denied that any of them are

response will for inflated claims. We are being blamed for something

we do not contribute towards. In fact, we actually mitigates

insurance losses and help the claim process to go quickly. Back in

Shipley, Glen was angered by something else. A total stranger

offered to help him afford to keep his car by its staging a bogus car

crash for a cut of the resulting insurance claim. My son is now

walking and catching the bus to school. Because I do not have a car.

I used to drop him off and taken to school, the reason my son is out

there in the cold morning and night and I am having to every -- write

an electric bike is because people like that are helping to drive up

prices for innocent, hard-working Bradford people. The problem for

ordinary motorists is that trying to fight what is in effect an

attempt to defraud them, albeit via their insurance companies, is it is

very difficult for them to do anything about it. My colleague has

been meeting an MP who was in that position and he has done something

about it. It was here that one Lincolnshire

MP entered the merry-go-round of the car claims industry. Karl

McCartney was a victim of a staged accident at this Chester roundabout.

Resulting in a 2000 -- a two-and-a- half-year legal battle. Enraged by

his experience, he took the opportunity to speak out against

the compensation culture in Tuesday's Commons debate. There is

a widely held view that there is an need for far harsher penalties for

uninsured drivers, and people who are aided and abetted by the claims

industry and lie about the extent of injuries caused to them. The man

who was in France break -- break for no reason. It was a small mop

up the claim that carried -- came in was �16,500. It was seen to be

fraudulent but the police have not chased it up., can't it blames the

claims management company to encourage people to claim for

injuries. The claim management trade association rejected the

allegation that our premiums are more expensive because of their

ambulance chasing. Four the average person on the street, they do not

know where to go. The role of the claims management company and the

claimant's solicitors, especially the claims management companies,

are to provide a conduit into that system. If you take that away, tens

of thousands of people will not get the access to justice that they are

legally entitled to. Matter who is to blame, the government is setting

up a new -- no matter who is to blame, the government is setting up

a new fraud squad to tackle insurance. But without regulation,

the bottom line seems to be that lower car insurance premiums for

motorists are a long way off. Plenty to talk about with our

guests, David Ward, Liberal Democrat MP for Bradford East, and

Karl Turner, Labour MP for Hull East who, who is in a Hull studio.

You are a Bradford MP, wide as Bradford have the highest car

insurance in the company? There is not one single reason, and we

featured on one particular aspect of this crazy system that is in

operation. The downside of doing that is we take away really what is

the main essential point we should be making, this is a crazy system,

and all of the separate parts of this, personal injury lawyer,

charging excessive fees, whether it is to do with on a no-win no-fee

cases, whether it to do is to do with uninsured drivers or problems

with the police and that their resources, all of these are

component parts. All of them need to be dealt with. Let's have a look

at a show called Crash for cash incident. This is an accident which

has been staged deliberately to make money at other insurance

company. Are these the sort of insolence that on the increase, not

just in Bradford but everywhere? There are two sides to this. First,

organised crime, mention has been made of the fraud unit which will

be set up a 35 police officers dedicated to looking at organised

crime. Them DEC -- then there is opportunistic claims. You have a

bump in a car, you think nothing of it, but you go to the pub and

someone says, but acclaim him. You could get two or �3,000. The

insurance -- the insurers will pay. You think, I am paying too much for

my insurance, why not? Karl Turner in Hull, you or a lawyer by trade.

Some might say this is part of a wider problem that has grown in

recent years, the compensation culture, people wanting something

for nothing, what -- would you agree? I would agree to an extent.

There is a mixture of things, it is the car crunchers, the claims

management companies, who are effectively making fraudulent

claims. But it is also referral fees, and the behaviour of

insurance companies. People are feeling squeezed. The government

have an opportunity in the legal aid and sentencing and punishment

of offenders Bill, which has just gone to the Lords, to do something

about this. Jack Straw's amendment would have dealt with referral fees

properly. But the government failed to act. I say there is a reason

behind that. The government are closely linked with the insurance

industry. I am right to say that the Tory party received nearly �5

million since David Cameron became the leader of the party. That needs

to be looked at very quickly. number of insurance claims, the

number of fraudulent insurance claims, went up hugely under the

Labour years. Some would say you had a soft touch system when it

came to the regulation of some of these companies. The reality is

that accidents are actually going down, cars are built much safer now,

but the price of insurance is going up. That needs to be dealt with. I

say that is something the government could have done with the

referral fee aspect, and dealing with insurance companies. They have

not done that, deliberately for the reasons I have suggested. The

Guardian and the Telegraph have been investigating a minister in

the Ministry of Justice, it seems to me that the closely associated

with the insurance industry. minister in question is not here to

defend himself. This new system to police referral fees, to stop

people making money out of reporting accidents, how can that

be policed? I will not be tempted into a political argument here. A

feature of the debate in the House of Commons this week was how all

parties from all sides were coming together to recognise parliament

needs to deal with this. The Transport Select Committee in the

previous parliament bid a fantastic job in keeping this on the minds of

ministers. That will continue. Referral fees will go as part of

this legislation, without a doubt, but that is not the only thing we

need to do. There is a concerted effort and co-operation from all

the parties and we will slay this monster.

This time last year, we were about to enter the worst cold snap for

decades. Most councils across Yorkshire and Lincolnshire say they

are better prepared this year, especially when it comes to

gritting the roads. However there are claims that some areas will not

have enough money to repair potholes if there is another big

freeze. This was the scene across parts of

East Yorkshire and Lincolnshire last November. Temperatures

plummeted as the country experienced the worst winter in

decades. But with warnings are more bad weather could be just around

the corner, it is claimed councils are better prepared than ever.

There is a real pressure on budgets generally, but when you think that

last year, we used �1.2 million of salts, this year we already hold

1.4 million tonnes of salt already. It is an increase in stocks. We are

better prepared than we have ever been forced a since last winter,

many council budgets are still on ice. It means this year, no

councils are spending more on protecting roads over the winter,

and Hull has cut its budget slightly. That means when the bad

weather returns, it is main routes which are once again prioritised,

and there will be even more pressure on smaller community to

protect themselves. Lincolnshire ship its salt over from Egypt

months ago, but despite the forward planning, not everyone is convinced.

Last year, smaller rural villages were hit hard. This one was cut off

by slow, and food was rationed in the local shops. After the roads

were not gritted. I was getting to the wholesalers and getting all the

necessary things like milk and bread, and as quick as I was buying

it, it was selling out too fast. So I had to ration it took two point

of milk and a loaf of bread per household. Realistically, we cannot

possibly salt and treat all highways on the network. We managed

to do one third of the network but that leaves some areas that do not

get treated as a matter of routine. We are trying to help them this

year as we did last year, by insuring that under severe

conditions, we get to them as soon as we possibly can. Villagers in

East Yorkshire are used to working together. Last year, they use a JCB

to clear the roads. Before this becomes a permanent move, they say

they need more council support. Having more of the raw materials,

the grit or Wroxall, available even if it is for the local people,

would have made the lot of sense. But it did not happen, we were

forgotten about. 100 of town and parish councils received thousands

of pounds of funding for self- hope. We had tremendous partnerships

working across East Riding, 1000 square miles, we cannot treat

everywhere in those tough conditions. The problems do not

stop there. When the ice melts, potholes are left. It became so

noisy here that this woman had to change bedrooms. This whole here,

as the lorries came down, it cracked and eroded, a chap went

into the hole and his tyre burst and he was lucky that he was not

seriously hurt. How concerned are you about problems after more bad

weather this year? I am concerned that if the temperature plummets

again and we have another bad winter, it will open this hole and

other holes will form a. estimate there are �10.5 billion

needed to bring the Highways up to a proper standard. Local government

on its own cannot afford that. We need national solutions to a

national problem. Councils say they are ready for arctic conditions.

The worst holes have been filled, and they have stocked up on salt.

Until the snow falls again, we will not know how well the lessons of

last year have been learnt. Let me go straight to Karl Turner,

does it bother you that most local authorities in Yorkshire and

Lincolnshire are not increasing their budgets this year for

protecting the road? Of course it does. I ought to say that I have

checked with my council today, they will be spending the same amount on

gritting as last year. The Lib Dem administration had planned to

reduce it but the new label council said they are prioritising it so

that is a good thing for people in Hull. They are not putting it up.

They are not, but they are prepared, they have been doing dry runs, they

are ready for the big freeze. This is about central government cutting

the funding to local authorities massively. That is a. David and I

will probably agree on. -- that is a point David and I will agree on.

Peter Buck from the LGA used a staggering figure, �10.5 billion to

take the road network up to scratch. That is an enormous amount of money,

how did we get into this state? had a couple of winters ago, one

which I cannot remember for all my life the length of. It was frozen.

What caught out all the local authorities is that they have a

reasonable stock every winter, but they were not able to replenish

that winter. Most authorities now, Bradford used to hold staff 1000

tonnes, that it had �26,000. -- it used to hold 12,000 tonnes of grit,

now it has �26,000. So it should had enough. Should we go down the

Scandinavian route and spend a greater share of our national

budget on snow clearing and protecting the roads in winter?

There is a strong argument for that. As I have said, this is local

authorities, having their budgets slashed massively. I have got to

prioritise what is important to them. This is an example of central

government attacking the local government and local governments

are struggling to cope. That is the issue.

On Tuesday, and MPs will debate the cost of fuel amid fresh called of a

reduction in the amount of duty on petrol and diesel. Debate has come

about after more than 100,000 people signed a government e-

petition. Been while the Taxpayers' Alliance has carried out its own

research which says drivers in rural areas are paying the highest

price when it comes to taxes. Motorists over the country are

overtaxed, but in Bradford, it is �209 per person, in excess, in

rural areas it is even worse. In Selby, �400. We are the most

overtaxed country in Europe when it comes to motoring taxes. The second

most overtaxed in the world. David Ward, can you understand drivers,

especially in rural areas, feeling they are being used boss a cash cow

up for all governments? The easy thing to do is to make promises.

Switch on the news tonight and you will see the troubles in Greece and

Italy, possibly the troubles in France as well. Let alone the

problems in this country. We all know what the problems are we face.

To say, yes, we can give extra money to the motorist, we will just

have to see what we can afford and what the arguments are in the

debate. Karl Turner, remember the fuelled protests in 2000?

Government upset the motoring lobby at your peril. It was the only time

Tony Blair said he feared for his Go -- feared for his job. It is a

huge strength of feeling. Absolutely, at families are feeling

squeezed. The government can do something about it. What we say is

they should not have increased VAT to 20%. They should bring that down

for a short time. People are really concerned about their budget at the