Batt O'Keeffe
Question:31 Mr. B. O'Keeffe asked the Minister for Finance if he intends setting aside the 1992 agreement with Allied Irish Banks relative to the Insurance Corporation of Ireland. [8556/95]
Written Answers. - ICI Agreement.
The agreement to which the Deputy refers was entered into between the Minister for Finance, the Central Bank and Allied Irish Banks plc. It could not be unilaterally set aside by any of the parties.
The 1992 agreement was concluded following a Government decision that AIB should contribute further to the cost of the administration of Icarom plc, formerly the Insurance Corporation of Ireland, because the funding arrangements which were put in place when ICI was placed under High Court administration in 1985 had proved inadequate. The agreement provided for AIB to make an annual contribution of £8.8 million to Icarom for a period of 20 years. This contribution was in addition to the annual contribution from AIB of £5.5 million over 15 years which was provided for under the funding arrangements agreed in 1985. Pursuant to the 1992 agreement the Exchequer also made an interest-free loan of £32 million to the administrator of Icarom.
On 1 February 1994 my predecessor informed the Dáil that the funding provided for the administrator should have the effect of meeting all of the outstanding liabilities foreseen, including the repayment of the £100 million Exchequer loan advanced under the 1985 agreement and the £32 million interest-free Exchequer loan advanced under the 1992 agreement. This continues to be the case.