asked the Minister for Industry and Commerce the total estimated cost to date of the collapse of the Insurance Corporation of Ireland; the total estimated profits made in each year since the appointment of the administrator; if he has had any discussions with the administrator about the future of the Insurance Corporation of Ireland; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Insurance Corporation of Ireland.
10.
The latest audited accounts of the company published by the administrator showed a net balance sheet deficiency of £136 million at 31 December 1987 after the £100 million advance from the banking sector is taken into account.
Since the appointment of the administrator, the audited accounts of the company have shown profits from continuing operations of £10 million for 1986 and £12.4 million for 1987. The company's 1988 audited accounts which will be published later this month are likely to confirm the continuing profitability of its ongoing operations. The administrator has recently submitted a detailed report to me regarding the future of the company. I am currently considering this report.
Can the Minister of State tell us if the detailed report submitted by the administrator to the Minister contains a request for recapitalisation of the company by the State and if this would mean further aid from the State?
I cannot comment in any detail at this stage on the contents of the report which are still being examined.
Can the Minister of State give the House a guarantee, should recapitalisation of the company or further aid be required in order to tackle the deficit of £136 million, that he would go back to Allied Irish Banks for a further subvention rather than making new State funding available?
I cannot speculate on what decisions may or may not be taken following the examination of the contents of this report.
Would the Minister of State agree that it would be more appropriate to seek funding from Allied Irish Banks rather than from the taxpayer?
Obviously the report covers all options open to the company. All of those options are currently being examined.
A final question from Deputy Bruton.
Can the Minister of State tell us when the report was received and when he expects to be in a position to make an announcement as to its further development?
The report was received by the Department in June 1988. Having been involved initially the Deputy will understand that this is a very complex area. All of the options outlined in the report and the findings of the examination carried out by the administrator are being fully looked at.
Would the Minister of State agree that it is undesirable that a report of this kind should be awaiting a decision by the Government for so long, almost a year at this point, given that it is important that a company of this kind should be planning its future? The Government should make up their minds much more quickly than they would appear to be doing at present.
I know the Deputy will understand when I say that companies of this nature are not necessarily amenable to overnight decision. The Deputy should be reassured by the fact that the administrator keeps the Minister and the Department fully informed on his thinking on what direction the company should take on a regular basis. Therefore there is no breakdown in communications.
And no decisions either from the Minister.
Decisions will be taken as and when required.
Question No. 11, please.
May I ask a brief question?
I have dwelt over long on this question. A brief question from Deputy Mac Giolla.
When the Minister has made his decision on what the appropriate procedure should be would he have any intention of informing the House of what has been decided?
I would envisage the House being kept fully informed, as is appropriate.