Vol. 435 No. 2
5 Mr. Rabbitte asked the Minister for Tourism and Trade the extent of the likely exposure of the Irish taxpayer as a result of the recent decision regarding export credit insurance cover for Iran; if he will give the total value of the contracts in respect of which cover was sought; the exporting companies; the conditions, if any, which have been attached; and if he will make a statement on the matter.
The up-to-date position in regard to the provision of export credit insurance for exports to Iran, following the Government's recent review of the matter, is as follows.
Firstly, no policies have yet been issued on foot of the Government's decision. A number of applications for cover are being considered in my Department, but in only one case has an actual offer of cover — which has not yet been taken up — been issued so far. In these circumstances, it is simply not possible to indicate the extent of likely exposure on the market. As the Deputy will be aware, such an estimate will be possible only when actual policies have been issued.
The total value of the contracts in respect of which cover has been sought significantly exceeds the limit for the market set by the Government and, accordingly, the maximum cover that may be provided is dramatically less than the level of cover sought. It is not the practice to disclose country limits, but I can assure the Deputy that it has been set at a realistic level.
It has not been the practice to disclose the names of companies availing of the export credit insurance scheme. This is confidential information related to the commercial operation of the companies concerned and its disclosure would be inappropriate.
Conditions to be attached to any policies issued, are being carefully considered by my Department at present, having regard to all the circumstances. I will not be in a position to give final details until this process has been completed. I can, however, confirm that the terms will be more onerous than these which pertained when beef was last exported to Iran. This is a reflection of the changed situation of the market, and will ensure that exporters will carry a fair and reasonable proportion of the risk.
Is the Minister seriously telling the House that he cannot tell us the identity of the exporter to whom an offer of export credit insurance has been made? Will he outline the terms of that offer and the credit period? Will he assure the House that his Department has examined the almost disastrous experience of the State in terms of the operation of export credit insurance to Iraq before making the decision to put new terms on offer to exporters in respect of Iran?
In one case, offer of cover has been issued but no reply has yet been received.
To whom?
It is not in respect of export credit for beef but in respect of a small amount of other matter. I know the Deputy is referring to the question of beef but the offer has not been made to a beef company yet. As I replied to the Deputy in an Adjournment Debate two weeks ago, the Government considered the matter of export credit insurance to Iran. We came forward with proposals and the companies who indicated an interest in that market have been notified of terms and conditions. As of now, no company has taken up the offer of export credit insurance to Iran but presumably some companies will and others have indicated that they will not.
Is the Minister suggesting that we will require another beef tribunal to find out the identity of the companies to whom offers are likely to be made?
I do not expect to have a beef tribunal in respect of the decisions I make in carrying our Government instructions with regard to export credit insurance to Iran.
But the Minister is keeping a secret.
