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Dáil Éireann debate -
Tuesday, 2 May 1989

Vol. 389 No. 4

Written Answers. - Export Credit Insurance Scheme.

29.

asked the Minister for Finance, in relation to potential liabilities of the State in respect of sums payable by way of export credit insurance in respect of beef exports to Iraq, whether the sanction of his Department in respect of such cover was sought; the total amount of such liabilities; and if he has satisfied himself with the procedures in place to safeguard the State from high risk exposure in such cases.

46.

asked the Minister for Finance, in relation to the export credit insurance scheme operated by the Department of Industry and Commerce (i) whether there is regular consultation between his Department and the Department of Industry and Commerce concerning the risk liabilities of the State under the scheme in general (ii) whether the sanction of his Department is sought in relation to decisions to afford such insurance in respect of exports to higher risk countries and (iii) whether his Department is informed of decisions made in the Department of Industry and Commerce in relation to such countries; and if he will make a statement on the matter.

I propose to take Questions Nos. 29 and 46 together.

Section 2.1 of the Insurance Act 1953 empowers the Minister for Industry and Commerce, with the consent of the Minister for Finance, to make arrangements for export credit insurance. Under agreed arrangements, the export credit insurance scheme is administered by the Insurance Corporation of Ireland plc (ICI) as agent of the Minister for Industry and Commerce. ICI are delegated authority to underwrite export credit insurance without reference to the Minister for Industry and Commerce. However, very large export contracts and contracts in markets not on the published country gradings schedule are referred by ICI to the Department of Industry and Commerce for approval.

The Minister for Finance is of course consulted on any changes to, or policy issues affecting, the Export Credit Insurance Scheme, including any increase in the ceiling on the State's liability for export credit insurance to Iraq. Any substantial increase in that ceiling is a matter for Government decision. Within the ceiling for Iraq, the Minister for Industry and Commerce may decide, on the basis of his commercial judgment, how much export credit insurance to afford for exports to that country.

The sanction of the Department of Finance was not sought in respect of beef exports to Iraq nor are details of these exports known to my Department.

The scheme is reviewed from time to time taking into account changes in circumstances and the general issue of State's liabilities.

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