asked the Minister for Industry and Commerce, given the absolute urgency of putting the Irish insurance industry on a sound competitive footing, if he considers it may be appropriate to revise Government policy to the industry to assist it to exploit the growing opportunities in the internationally traded financial services industry.
Ceisteanna — Questions. Oral Answers. - Insurance Industry Competitiveness.
29.
It is the Government's policy to encourage the Irish insurance industry to operate on a strong competitive basis so that it can meet the challenges and take advantage of the opportunities presented by a changing market.
The Government have undertaken a range of measures to improve the insurance environment. These have been detailed on previous occasions in this House. However, the primary onus is on the insurance industry itself to plan for its development in the years ahead. My Department have been in dialogue with the industry on the steps which should be taken in relation to the pending freedom of services in non-life insurance.
I am also generally supportive of the conclusions and recommendations of the Joint Committee on the Secondary Legislation of the European Communities which, in its report published in December last, examined the impact of certain EC legislation on the Irish insurance industry. In this context I can say that it is our intention to pursue negotiations on the draft services Directive with a view to achieving whatever reasonable safeguards can be obtained for the insurance sector in Ireland. The importance of this issue has already been highlighted in the declaration made by the Government in relation to the Single European Act. That declaration states that, in relation to harmonisation of legislation on insurance, the Government would expect to be able to rely on a sympathetic attitude from its Community partners for any special provision made for the position of the insurance industry in Ireland.
I regret that the Minister did not really follow the question which was geared towards the international trade services, particularly so far as the insurance industry is concerned. The Minister says that in the past the improvements with a view to helping the insurance industry have been detailed. Would the Minister regard the two Bills introduced by the Government as being in that improvement programme, namely, the Courts Bill which proposes to abolish juries, and the Insurance Bill, 1986? Is it intended to have these matters attended to before the House rises for Christmas?
I would regard the Courts Bill, the Insurance Bill and the other Bills in relation to industrial safety as major contributions to the improvement of the insurance environment. The Second Stage of the Courts Bill has already been taken and the agreement of the Whips will presumably provide for the Committee Stage in due course. I am hopeful that it will be taken early.
Is the Minister trying to mislead the House? He knows it has been decided to shelve both of those measures, as far as the abolition of juries is concerned, because some deal has been done with the Bar Council and because of the question of representation at court proceedings. The reason the Insurance Bill 1986 was introduced——
A question, Deputy.
——was to tighten up on solvency arrangements and to introduce regulations in relation to intermediaries. If the Minister was genuinely interested in protecting the insurance industry he would insist on having these matters completed during this term. It is not the Minister's intention to do so. What does he regard as the estimated losses by the insurers in the general insurance area for this year and has he any solution whereby he might make them ready to take on board the freedom of services directive which will be coming on stream in a few years?
The Deputy is asking a different question if he is looking for details of financial returns from the companies. I am confident that both the Courts Bill and the Insurance Bill will be completed and will provide a great improvement in the insurance environment.
When?
I cannot give an answer to that. It depends on agreement between the Whips as to when Dáil time will be organised.