Vol. 553 No. 6
130 Mr. Naughten asked the Minister for Agriculture and Food further to Parliamentary Question No. 13 of 20 June 2002, the measures which have been put in place to ensure that a similar contention of liability does not arise at any future date; and if he will make a statement on the matter. [14937/02]
The Deputy is referring to the fire at the UMP Plant in Ballaghaderreen in 1992 when some 7,000 tonnes of intervention beef were destroyed. Following the fire the nature and scope of insurance cover on the beef intervention stock was reviewed by independent consultants on behalf of the Department and the following upgraded conditions have applied since then: tender documents require the successful tenderer to furnish original policy documents; the identity of the insurer and its regulatory authority must be given in the tender documents and in the case of a collective policy, the insurers and each insurer's percentage of the proposed cover to be held must be stated; the lowest price tendered for the placing of the risk will not necessarily be accepted; a full assessment of the broker's ability to place the risk is made and confirmation of the broker's professional indemnity insurance is sought; as long as market conditions allow, multiple layering in placing the risk is to be avoided and where possible the lead insurer in the placement will be subject to Irish regulatory control.
In addition to these specific measures the EU freedom of services regulation now governs the manner in which EU insurers transact cross border business. This had not been implemented in 1989-1990 and the activities of insurance brokers are now regulated by the new Central Bank Regulations.
131 Mr. Ferris asked the Minister for Agriculture and Food the measures he will take to compensate farmers in County Kerry who are owed some ?2.7 million as a result of the closure of a company (details supplied). [14938/02]
The company to which the Deputy refers has gone into liquidation. The issue of compensation for losses incurred is a matter to be resolved between creditors and the liquidator. It would not be appropriate for the Government to intervene in what is a commercial matter.
I am aware of the impact of the collapse of the company on local farmers. This type of situation should be avoided if at all possible and the practice adopted by the majority of meat factories of paying for cattle on the day of sale substantially limits the potential exposure of farmers in the event of a slaughterhouse going into liquidation.
