Vol. 482 No. 5
78 Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will give details of the levy which was introduced to assist PMPA when it collapsed; the revenue generated in this regard; the use of these funds; and if she will make a statement on the matter. [18379/97]
The insurance compensation levy was introduced on 1 January 1984 following the collapse of PMPA in 1983. Levies were paid by all non-life insurers at a rate of 2 per cent of gross premium income until 31 December 1991. The rate was reduced to 1 per cent from 1 January 1992 to 31 December 1992. The levy ceased to apply from 1 January 1993 as it was felt that sufficient funds had been collected to enable the succesful completion of the administration of Primor plc, formerly known as PMPA Insurance plc. Some £148 million was collected by way of the levy, which is used to finance the administration of Primor plc.
The insurance compensation fund, from which payments are made to the administrator of Primor, is maintained and administered by the accountant of the High Court, acting under the control of the President of the High Court. An abstract of the accounts of the compensation fund for each year is required to be furnished to the Minister for Enterprise, Trade and Employment by the accountant and is published in the insurance annual report.
Finally, I might mention that the compensation fund also received, under separate funding arrangements for the administration of Icarom plc, formerly Insurance Corporation of Ireland, involving the banking sector generally, a sum of £100 million in December 1985. This sum was for immediate on-lending to Icarom.
