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Dáil Éireann díospóireacht -
Wednesday, 26 Apr 1989

Vol. 389 No. 2

Written Answers. - Export Insurance.

117.

asked the Minister for Industry and Commerce the average amount of the premium payable under a policy of export credit insurance for exports to Iraq in each of the years 1986 to 1988, inclusive.

There is no average amount of premium payable under a policy of export credit insurance for Iraq or indeed for any country. The amount of premium payable is usually agreed with the applicant for cover at the outset of an insurance contract and applies thereafter for the duration of the contract, except when the estimated level of business governed by the contract is not realised, in which event an appropriate adjustment is made at the end of the insurance contract.

118.

asked the Minister for Industry and Commerce the countries, other than Iraq, in respect of which it was decided in 1987 that decisions relating to export credit insurance cover would be a function of his Department rather than a delegated function of the Insurance Corporation of Ireland.

119.

asked the Minister for Industry and Commerce the date in 1987 of which it was decided that all decisions relating to export insurance for Iraq and some other countries would be the function of his Department rather than a function delegated to the Insurance Corporation of Ireland.

I propose to take Questions Nos. 118 and 119 together.

Where applications for export credit insurance are referred for ministerial consideration and decision, this arises only because of the nature or size of the contract or the degree of risk, which includes the country risk, involved. This system of referral has been the procedure since the very commencement of the insurance schemes in 1971, being considered necessary from the viewpoint of prudent insurance practice and the need to safeguard the Exchequer's interest. It has been operated by all Ministers for Industry and Commerce since the schemes began.

In 1987 the broad operational framework between the Minister and the Insurance Corporation of Ireland was formalised in greater detail by way of updated agency agreement between both parties with a view to meeting the increasing volume of business covered and the wish by both sides for greater clarity and certainty in operational arrangements. In this context, the system of referral was also formalised on the basis of its operational form up to then. The agreement involved no new decisions on individual countries.

Within the traditional framework for referral which continued, therefore, to operate in 1987 no decisions were taken in that year involving referral to the Minister in respect of any additional countries.

The decision that all applications for cover in respect of Iraq should be referred for ministerial consideration was taken in 1983 and not in 1987. It has remained the practice since.

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