asked the Minister for Industry, Trade, Commerce and Tourism if he will detail the total amount of money received under all heads by the PMPA insurance company since they went into administration; if the company are now on a sound financial footing; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - PMPA Insurance Company.
5.
I assume the Deputy is referring to moneys made available to the administrator of the PMPA from the Insurance Compensation Fund, in accordance with the Insurance Acts, to enable him to carry on the business of the insurance company. As I indicated on 25 October in reply to a question from Deputy Flynn, I am informed that a total of £30 million has so far with the approval of the High Court been advanced from the fund to the administrator.
As to whether the company is now on a sound financial footing, I stated in this House on 17 May last that it may take a number of years to rehabilitate the company's finances and that is still the position.
The Minister has stated that the PMPA have got £30 million. Will he tell the House for how long the company will receive that kind of money? Can he give any hope to investors throughout the country that they will get a return on their money or a total refund if this situation where the company are getting large sums of money continues?
I am not quite sure if the Deputy is referring to the PMPA company. I am satisfied it will take a number of years to get that company back on their feet. I should like to inform the Deputy that the statutory deadline for the publication of the 1983 accounts of the PMPA by the administrator — who is acting as an officer of the High Court — is 30 November 1984. I am sure when the accounts are published we will have a far clearer picture of the financial position of the company.
Can the Minister offer any hope of a refund to investors who have been offered only 12p in the £? Is there any prospect of their getting a refund in excess of that amount or a total refund in the future? Can he give any hope to the 9,000 innocent investors?
The Deputy will recall that legislation was introduced last year to protect the policyholders of PMPA and to ensure that the insurance market for motor vehicles was secure. The Deputy is now asking a question regarding a subsidiary of the PMPA and that is not the subject matter of the question addressed to me.
When it was agreed to allocate £30 million from the fund this year to accommodate the liabilities of the PMPA, was it indicated in that request what was the total estimated liability?
The amount of £30 million which the administrator borrowed from the Insurance Compensation Fund was authorised by the accountant of the High Court. It was not authorised by me.
As the Minister is aware, there is a 2 per cent levy on insurance for people in other companies. How much of this money has been spent by the PMPA to give cheaper insurance to people insured by them? That company are spending a lot on advertising and it is taken from the proceeds of the 2 per cent levy.
That is a separate question.
The Minister may have the information.
The administrator acts with the approval of the High Court and is answerable to the High Court. I deal with the company as the regulatory authority in respect of my supervisory powers with regard to reserves and price increase applications. Recently I granted a substantial price increase to the PMPA to allow the company to compete in the market and to get sufficient revenues that will ensure their viability in the long term. That is the objective of the Government.