Brian Cowen (Laois-Offaly, Fianna Fail)

The purpose of the change is to allow for a rationalisation of the current structure under which the remaining business of ICI is administered. The direct effect of the inclusion of this amendment would be to allow me to wind up the SAT holding company. That acts as a holding company for another company called Icarom, which in turn administers the remaining insurance business of the former ICI. The directors and shareholders of SAT and shareholders of Icarom are officials from the Department of Finance. The proposal provides that the Minister can wind up SAT, and Icarom can then be reincorporated as a single member company.

The most significant benefit arising from this change will relate to proof of state ownership. The argument has been made that because Icarom is held through a holding company it is not entitled to be treated as an entity owned by a foreign state and thus entitled to have cases in which it is involved heard in American federal courts. Despite the fact that appropriate proofs have been provided, such proofs have not always been accepted as sufficient. The winding up of SAT and the reincorporation of Icarom as a single member company vested in the Minister for Finance will simplify the proofs required and eliminate this problem.

Subsection (a) provides for the winding up of the SAT company and the transfer of the Icarom shares held by SAT to the Minister, and that any assets remaining after the wind up of SAT would be transferred to the Exchequer. Subsection (b) requires SAT shareholders to provide their shares to the Minister when required by the Minister and provides that Icarom may be converted into a single member company with the Minister as sole member.

With regard to the 2% levy that was used to fund the administration, I do not have a briefing on that aspect. I will have to check whether it is relevant in respect of this issue and get back to the Deputy on Report Stage.

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