Vol. 239 No. 6
asked the Minister for Industry and Commerce if he has considered the possibility of increasing the investment target of foreign insurance companies' investments in Ireland to 90 per cent of their liabilities, in return for an easement in the income tax allowance for Irish policy holders in such companies.
33.
asked the Minister for Industry and Commerce whether he proposes to take any further action following his recent speech on the subject of foreign insurance companies in Ireland.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 32 and 33 together.
I have asked the non-Irish life assurance companies to increase the proportion of the funds representing their liabilities to Irish policy holders which they invest in this country beyond the 66? per cent which was the target set under the original agreement for the end of this year. I consider it important to secure an increase and I have been trying to have it done by agreement as heretofore. The companies, however, have imported the question of income tax treatment of policy holders and progress with a new agreement has not, so far, been possible. I will try again, and failing agreement, will consider what other means should be adopted to deal with the situation in regard to investment.
The Minister refers to the present agreement which provides for—what was the percentage?
It was a rising percentage, to reach 66? per cent at the end of this year.
And the Minister envisages an increase in that?
Yes.
But has the Minister any target in mind?
Yes.
But he is not prepared to say at the moment?
I do not think there is any great secret about it, it is 80 per cent.
Has the Minister any grounds at this stage for confidence that this will be met by the companies?
I am always hopeful.
We know that.
