I move that the Bill be now read a second time.
The Insurance Act, 1953, which this Bill proposes to amend, provides that, for the purpose of encouraging exports, the Minister for Industry and Commerce with the consent of the Minister for Finance, may make arrangements for giving guarantees in connection with the export, manufacture, treatment or distribution of goods or the rendering of services. Under the Act of 1953 the aggregate amount of the liability, at any time, of the Minister for Industry and Commerce for principal moneys may not exceed £2 million. The purpose of the Bill, which is now before the House, is to raise the statutory limit of £2 million provided for in the Act of 1953 to £5 million in order to provide for the growing demand for political risks insurance cover under the Act as a result of the increase in the volume of exports.
The aggregate potential liability of the Minister under political risks insurance policies in force at 31st March, 1961 was over £1½ million. Having regard to the increasing demand for insurance cover under the Act, it is probable that the limit of £2 million will be reached in the near future and it is necessary to raise this limit. I think that the new limit of £5 million is, in the circumstances, a suitable figure. The aggregate potential liability would, of course, become an actual liability only if all the risks covered by the insurance policies materialised. As Deputies will, no doubt, appreciate this is an entirely remote contingency.
The present Bill will facilitate the expansion of our exports by making possible the continuance on an increasing scale of insurance cover for exporters against certain risks. These risks, which are inseparable from the export trade, are of a type that cannot normally be covered by insurance or otherwise guarded against by commercial means.
I commend the Bill to the House.