(Dublin North-West) asked the Minister for Industry and Commerce if he will give the staffing details of the monitoring and supervisory section in his Department, with responsibility for insurance matters; and the level of strengthening of that section which has taken place in the past year.
Ceisteanna—Questions Oral Answers. - Insurance Monitoring.
4.
A total of 27 staff are currently employed in the insurance section of my Department, as follows: one assistant secretary (part-time), two principals, one accountant grade I, four assistant principals, eight higher executive officers, seven executive officers, one clerical officer, and three clerical assistants. This compares with a total staff complement of 21 a year ago.
Some further developments have also taken place and in this connection I would refer the Deputy to a question I answered on 11 February 1986. For example, I have obtained sanction for the appointment of two actuaries, and their recruitment is being pursued with my colleague, the Minister for the Public Service. Also, an independent review of the supervisory procedures used by the Department in non-life insurance was completed earlier this year. This review has endorsed the methods used to date and has recommended a number of detailed developments which will be implemented in conjunction with the new computer system due to be installed in the insurance section later this year.
We are plesed to hear the Minister has acted on the commitment given here last year but we are very anxious about the appointment of the actuarial staff. When the emergency legislation dealing with ICI was introduced the Minister gave a commitment that two actuaries would be taken either on a consultancy basis or full time on the staff. Can the Minister positively say what steps he has taken other than asking his colleague, the Minister for the Public Service, for sanction?
There are two main aspects to which I would like to refer. The recruitment of two actuaries is under discussion with the Minister for the Public Service. We are very anxious to have two actuaries of the right calibre and to ensure that we have a proper professional complement in the staff to cover life and non-life insurance. There is no unnecessary delay in the recruitment of these officers. Whether they will be recruited by way of consultancy or by full time employment is at present under discussion.
Would the Minister confirm or deny that the reason he cannot recruit the actuaries is that the Department will not pay the going rate? If that is the case and if he is precluded from doing this, would he take my advice and take on this actuarial experience by way of consultancy?
The Deputy will be aware that there is a Government guideline in respect of pay. I can assure him that we will recruit two actuaries either by way of permanent appointment or by consultancy——
When?
——as soon as negotiations have been completed with the Minister for the Public Service.
If the Department offer them the £50,000 they get outside I guarantee these appointments will be made within a week.
In view of the increasing complexity of financial institutions — particularly in regard to insurance companies getting into mortgage lending and looking at things like stockbroking, and new developments in financial services generally — is the Minister satisfied that an increase of six additional staff members, and the actuaries is enough to give a strong supervisory section in a market that is changing dramatically? The insurance and financial areas are changing more dramatically than any other sector of the economy. Is the supervisory section in the Department strong enough and aware of those rapidly changing developments?
We are talking about the insurance industry itself rather than other financial sectors. We had a review of the supervisory procedures carried out by a consultant and the review endorsed the methods used to date. I am satisfied that the increase in the complement is necessary in view of the complexity of the work. In 1976 there were ten full time staff members and one part-time staff member. We have increased staff numbers substantially. The appointment of the actuaries together with the installation of an advanced computer system which will allow a supervisory exercise to be carried out over a short period of time will be of benefit to my Department. I am satisfied that the supervisory powers within my Department and staff to deal with them are adequate to meet the requirements of the industry.
Another question. That includes the newer activities of the insurance companies and the development of their planning. The Minister's supervisory structure will include monitoring those activities of insurance companies.
My supervisory functions are confined to the insurance activities of the companies per se. They do not extend to any other financial sector because I am restrained by the Acts under which I work and by the Directives from the EC under which I work. Therefore, I am talking strictly about insurance aspects of supervision.
So insurance companies' other business does not fall to the Minister.
That is correct. Insurance companies operate in this State under authorisation and my supervisory powers relate specificially to life and non-life insurance.
So insurance companies are wide open.
That would come under another Minister perhaps the Minister for Finance or the Minister for the Environment but specific areas of responsibility are allocated to my Department.
Ceist 5. I ask Deputies not to ignore the Chair.