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Over 100 MPs back CLA’s campaign to help equine businesses

Over 100 MPs back CLA’s campaign to help equine businesses

On the day that the Compensation Bill has its second reading in Parliament a campaign taken to Parliament by the Country Land and Business Association (CLA) to change a law that is causing soaring insurance costs for businesses, particularly those in the equine sector, has received endorsement from over 100 MPs, the CLA announced today (Thursday 8 June).   

Early Day Motion asked MPs to support the CLA's call for an amendment to the Animals Act 1971. The interpretation of this Act given by a majority (3:2) of the House of Lords in Mirvahedy v Henley, means that keepers of animals, such as horses and cows, can be liable for accidents involving their animals even when they have taken all reasonable steps to prevent the accident; there is liability without fault.

David Fursdon, President of the CLA said: "Such a liability regime  is  fuelling  the compensation culture and is already limiting the availability and increasing the cost of insurance. At present, equine businesses, in particular, are suffering due to increased costs caused by this unfair liability regime and there is an urgent need for change if businesses are not to fail.

"If the Compensation Bill is really to have any impact on the compensation culture then liability which exists under the Animals Act needs to be addressed. The long title of the Bill has already been amended and needs to be amended again to allow for focusing of liability under the Animals Act.

"As agricultural profits decline, the equine sector is an increasingly important diversification option for rural businesses.  This interpretation of the Act is effectively creating liability without fault. The response to this EDM highlights the problem facing many businesses and this will help us push for a change in the law," David Fursdon concluded.

The CLA argues that a strict, non-fault based liability regime should be restricted to animals that are fundamentally dangerous rather than being applied to normal animals behaving in a normal way and that there is an urgent need to focus the Animals Act so that it achieves this end. Limiting liability for normal animals to cases of fault (negligence or breach of health and safety legislation) would provide the incentive for owners to protect third parties but would remove liability for genuine accidents.

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