Vol. 463 No. 8
6 Mr. Molloy asked the Minister for Tourism and Trade the total volume of export credit insurance cover provided in 1995; the actual cost of net liabilities incurred under this cover in 1995; the actions, if any, being taken to recover all outstanding liabilities; and if he will make a statement on the matter. [7538/96]
The value of export credit insurance cover provided in 1995 was £7.2 million. No claims have arisen to date in respect of this cover.
In any situation where a claim has been paid, efforts are made to effect recoveries where there are realistic prospects of obtaining payments. Recovery options used would depend on the particular circumstances of the individual cases concerned. As an example, in sovereign debt cases, direct state-to-state contracts would be used. In commercial debt cases, litigation or the threat thereof might prove to be the best option.
I am sure the Minister is as pleased as I am that the alteration in the rules introduced by Deputy O'Malley when Minister for Industry and Commerce to ensure more stringent and prudent controls has resulted in a reduction of the exposure of the taxpayer in this area. I am pleased that the figures given by the Minister confirm the effectiveness of the action taken by Deputy O'Malley on that occasion.
The limit set in law in 1988 was £500 million. Because of the restructuring of the State scheme it is unlikely that we will reach anything approaching that figure again.
