Dáil debates

Friday, 24 June 2005

Air Navigation and Transport (Indemnities) Bill 2005 [Seanad]: Committee and Remaining Stages.

 

12:00 pm

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)

There has been strong resistance from all governments to this issue. The Deputy is correct in the sense that it was flagged for some months, but that is why we were not giving an indication, overtly in any fora, that EU governments might consider this. However, it became clear this month that we had no choice. The effect of the amendment would be to insert a sunset clause in the Bill. Currently, there is no such clause in the Bill. As the Deputy and I accept, since the withdrawal of insurance, there is expected to be a permanent change in insurance conditions. Insurers do not intend to go back to covering dirty bomb and electronic-magnetic pulse risks in future. Therefore, it is not appropriate for the new Act to have a provision for it to lapse automatically, although I accept why the Deputy has moved the amendment.

The consequences of an accidental and unintentional failure to renew the Act could result in the collapse of an airline or the closure of an airport. The Oireachtas will continue to have an appropriate degree of control because section 2(7) includes the usual provision for laying Government orders before the Oireachtas and for either House to be able to pass a resolution to annul the order within 21 days. The fact that the Bill cannot lapse automatically is also balanced by the 12-month maximum timespan for orders and indemnities, which means that indemnities cannot be put in place and then simply left there indefinitely. That is part of what we are all trying to achieve.

The Bill also provides that indemnities can be terminated at any time should that become appropriate. In the broader sense, we do not know at this stage what Europe may come up with or what the legislative base will be. We may well have to come back on foot of whatever Europe-wide agreement is reached. I hope that such an agreement would move the goalposts quickly away from governments to establish a European mutual fund. I have no difficulty in keeping people informed, as they should be. We did not want to have that provision in the Bill in case, for whatever reason, the timeframe lapsed and we ended up without cover. For those reasons I cannot accept the amendment.

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