Dáil Éireann díospóireacht -
Thursday, 15 Nov 1990

Vol. 402 No. 7

Ceisteanna — Questions. Oral Answers. - Beef Exports to Iraq.

Seán Barrett

Ceist:

1 Mr. S. Barrett asked the Minister for Industry and Commerce if he will outline all the considerations and circumstances which led to the decision in 1987 to restore export credit insurance for the export of beef to Iraq; the representations which were made to him or to any other Minister which influenced that decision; the considerations and circumstances leading to the cancellation of export credit insurance policies in respect of beef exports to Iraq in November 1989; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

In May 1987, the then Minister for Industry and Commerce decided to reopen export credit insurance cover for exports to Iraq within a specified limit. Cover with one exception had been suspended since May 1986. The decision to reopen cover was taken because of what was perceived at the time as the potential of the Iraqi market for several Irish companies from whom applications for cover were on hands. Representations were made by and on behalf of some of the applicant companies.

The considerations and circumstances leading to the decision in October 1989 to void certain export credit insurance policies in respect of beef exports to Iraq were spelled out in my statement of 18 October 1989 which I read into the record of the House when replying to questions on 1 November 1989.

Mr. S. Barrett

I thank the Minister for his reply but unfortunately he has not covered all aspects of the question in relation to the manner in which the cover was reintroduced. I accept that he was not Minister at the time but there must be files in his Department to give us the information required. Were any contacts made between members of the Goodman Group and any Minister or Ministers of the day in 1987? While the Minister said representations were made from a number of companies, he must be aware that all the cover granted was given to one company. Why was the figure of £120 million agreed in relation to the level of cover given? Were there any indications from the Department's files regarding discussions as to where this meat would be sourced? Were questions asked as to whether the amount of beef spoken about would be available solely in Ireland? My understanding is that it was not all available in Ireland and that this was made clear to the Minister of the day.

An Ceann Comhairle

I rather hoped for brevity, having regard to obvious reasons.

Mr. S. Barrett

Will the Minister in his reply refer to the statement in the Irish Independent that the examiner to the Goodman Group has made it clear that in the scheme of arrangement put to the creditors he is relying heavily on £68 million of claims being recovered from insurance?

An Ceann Comhairle

The Deputy has made his point.

Mr. O'Malley

The Deputy's statement that all the cover made available in 1987 went to one company is not correct. There were, to the best of my recollection, five or six companies, but the great bulk of the cover certainly went to one company. I think there were five others in all. Representations are frequently made to Ministers and Departments. The files in my Department which I have looked at show that written representations were made by one Minister at the time to the Minister for Industry and Commerce, but those representations were on behalf of a pharmaceutical company in the Minister's own constituency and the amount of cover concerned was very small in comparison with what we are dealing with here.

Regarding the statement attributed to the examiner, I am not aware of the grounds on which the examiner made the statement. I will, of course, be contesting vigorously these proceedings against the State and it would not be opportune for me or the Deputy to pursue that aspect any further in this House.