On the adjournment the Minister for Local Government and Public Health desires to make a statement.
LOCAL AUTHORITIES (MUTUAL ASSURANCE) ACT, 1926.
Can I ask a question of the Minister for Industry and Commerce now?
No. The motion has been withdrawn.
In the case of Byrne v. The Irish Public Bodies Mutual Insurance Company, Ltd., the Circuit Court decided yesterday that the Local Authorities (Mutual Assurance) Act, 1926, does not apply to the defendant company, and as a result of the decision that Act must now be regarded as useless for the purpose for which it was framed. The defendant company was formed by local authorities and complied with all the provisions of the Act except the provision that the insurance must be carried out by the company on a mutual basis. It has been decided in this case that a company, where the risks insured against are covered by re-insurance, and not by the mutual liability of its members, does not within the meaning of the Act "mutually" insure its members.
That being so, the Act was drafted under an insurance plan and does not achieve the objects of the Oirachtas in passing it. Re-insurance is, of course, essential to the financial soundness of an undertaking of this kind proposed, and in the early stages must be the principal security against risks.
The Government have therefore decided to introduce legislation immediately to cure the defects in the Act and enable it to fulfil its purpose, so that a company of this kind formed by local authorities may carry on operations for their sole benefit in the manner intended when the Act was passed. It is intended that the Bill to be introduced will also include provisions validating the operations of the Irish Public Bodies Mutual Insurance Company, Ltd., from the date of its registration to the passing of the new Bill, and safeguarding local authorities, who have dealt with the company under a bona fide misapprehension of the legal position, from loss arising from these operations.
Would it not be sufficient if the new legislation regularised any business done before the decision of that Court, and not any business that may be transacted between the giving of that decision and the passing of new legislation?
That is a matter that will arise on the Bill.
When will the Minister introduce the Bill?
I hope to introduce the Bill on Wednesday next if by that particular time I am able to give complete consideration to all the points at issue. At all events, the Bill will be introduced at the earliest possible moment.
The House adjourned at 2.5 p.m. until Wednesday, 30th May.