The employers' organisation IBEC, the Construction Industry Federation (CIF) and the Small Firms' Association yesterday criticised what they called the lack of action by the Government to support businesses which have been affected by the collapse of Independent Insurance in Britain.

Speaking after a meeting with Mr Noel Treacy, Minister of State for Science, Technology and Commerce, IBEC's director general, Mr Turlough O'Sullivan, said the minister had failed to offer any concrete support to Irish companies affected by the collapse of the insurer.

He said the Government appeared to be trying to distance itself from the matter and take no responsibility for the position in which many Irish companies now found themselves. The CIF described the Government's response as extremely disappointing.

"We had hoped and indeed expected that the Government would take a proactive role to protect Irish companies and claimants that have been exposed by the collapse," it said.

IBEC said three key issues are now facing Irish companies affected by the collapse. These are the cost of placing business with other insurers, which in all cases resulted in increased premiums; the liability for companies in respect of existing claims, and the potential liability for companies in respect of claims lodged in the future relating to a period in which the companies were insured with Independent.

The three organisations have proposed a three-point plan for policyholders affected by Independent's collapse. They said an administrator should be appointed to act on behalf of interested parties in respect of dealings with the liquidator and the payment of outstanding claims. The Government should explore with both the UK and EU authorities what protection is afforded non-UK clients of Independent, according to IBEC. It also said new measures should be introduced to raise the level of competition in the Irish non-life insurance market.

HSBC is suing former Independent Insurance chief executive, Mr Michael Bright, for £4.28 million sterling (#7.02 million), it emerged yesterday. The private banking arm of HSBC - HSBC Republic Bank - is suing Mr Bright over an outstanding loan he took out last December. It was understood the loan was secured against shares in the now defunct Independent - Mr Bright has a 6.1 per cent stake.