asked the Minister for Industry and Commerce the nature of any consultations which have taken place with the EEC in regard to insurance matters; and if he will state the decisions already taken by the Community on this subject.
Ceisteanna—Questions. Oral Answers. - EEC Insurance Directives.
44.
To date only two directives on insurance have been adopted by the EEC. The first of these deals with the elimination of restrictions on freedom for Community insurance companies to undertake reinsurance and retrocession business in any Community country, and was adopted in 1964. This directive was discussed with the EEC and, in the light of these discussions, it was found that the directive did not require any change in our law.
The other directive concerns insurance for motorists travelling abroad. Both my Department and the Department of Local Government had consultations with the EEC Commission before it was adopted. The result of these consultations is that the Irish insurance companies have been given 12 months from the date of accession within which to make the arrangements necessary to comply with the terms of the directive. This is acceptable to these companies.
The Minister states that the Department, on examination, considers that legislation is not in need of amendment in order to comply with the directives. Surely the Minister knows that under existing legislation only a certain number of companies can operate within the Twenty-six Counties. At this moment many businesses, because of the restrictive aspect of our Insurance Act, cannot get full insurance and people would regard one of the benefits of EEC membership——
We cannot argue the whole question.
I am making the point that amending legislation must arise on our entry into the EEC because of the restrictive clauses in the 1963 or 1965, is it, Insurance Act.
Could I ask the Minister if the present tax allowance in respect of Irish insurance contravenes the regulations of the EEC?
No. My information is that there is nothing in the two directives, certainly in relation to the first directive to which I referred, necessitating a change in the law and no information at all of there being obstacles of the nature mentioned.