asked the Minister for Industry and Commerce if he will make a statement regarding the number of cases in which insurance cover, under the export guarantee scheme up to a maximum of £142 million, can be provided under the export credit insurance scheme in relation to exports to Iraq, Egypt, Kenya and Nigeria, under special arrangements not involving premium increases; his present contingent liability in respect of the policies in relation to these exports; whether any claims have been made under these because of default in payment to exporters; and his views on such exemptions as a matter of policy.
Written Answers. - Export Guarantee Scheme.
21.
The cases to which the Deputy refers are those where the Government decided during the period 1983 to 1986 to approve special export credit insurance cover for exports to the countries in question. The proposals, while not acceptable under the normal commercial criteria of the export credit insurance scheme, were nonetheless, considered to be an assumable risk because of the attendant economic and employment benefits in Ireland. Where such cover is provided, strict conditions are applied in terms of the level of cover made available, the rate of premium charged and the credit period permitted. Total cover of £142 million was available in respect of the markets in question.
The present level of contingent liability in respect of cover already granted in the countries in question is £37.46 million. Two claims totalling £120,000 approximately have been paid in respect of defaults in payments to exporters.
The question of making proposals to Government for this special cover is searchingly re-appraised in my Department by reference to the changing political and commercial situations in the countries concerned and to their current and past payment records.