Vol. 505 No. 3
27 Proinsias De Rossa asked the Minister for Agriculture and Food the position regarding the legal action being taken by his Department regarding insurance cover of beef held in a company (details supplied) in County Roscommon which was destroyed by fire in the early 1990s; and if he will make a statement on the matter. [13594/99]
Nearly 7,000 tonnes of intervention beef, the property of the European Community, was destroyed in January 1992 in the course of a fire. This beef, in common with all stocks of intervention beef held in Ireland on behalf of the Community, has been fully insured by the Department for all risks and the necessary premium paid.
In the immediate aftermath of the fire, liability was repudiated by the lead insurers with which the insurance had first been placed. At the same time, the Department was informed by its broker that the risk had also been placed with a second lead insurer some months before the fire. The Department submitted a claim to its broker for £23 million on 27 January 1992. Liability was denied by the insurers and a complicated process of litigation was initiated.
Some insurance companies have sought a declaration against the Department that they have no liability in this matter. There are six separate sets of proceedings on this issue and particulars are being exchanged at present. It is possible that these cases can be brought to court within a year. The Department has taken a separate case against other insurers, who are challenging the jurisdiction of the Irish courts. The High Court has already found in the Department's favour on this but this finding is being appealed to the Supreme Court. This case may be heard before the end of the year.
The Department is also proceeding against the broker concerned both in respect of his company and on a personal basis. Nine sets of proceedings are now involved in this matter and I can assure the House that each is being pursued with vigour.
On what basis did the original broker repudiate the insurance agreement? Were there any arbitration clauses in the agreement? At what stage are the nine sets of litigation proceedings? Are pleadings closed or set down for trial?
The Department paid the premium and the insurers repudiated the claim. The proceedings are intended to establish the reason for this. The Department, like all Departments, is advised by the Attorney General's office and its counsel. Proceedings are then initiated by the Chief State Solicitor's office. We are doing everything possible and I invite Deputies to look at all the files in this regard. We want to conclude this matter as quickly as possible.
