Michael Noonan (Limerick City, Fine Gael)

I am not proposing any changes in the stamp duty but all such issues are budgetary issues and it would not be done in mid-year in any case.

Subsection (1) makes the Central Bank responsible for assessing the fund from time to time to see if it needs financial support. It can determine the appropriate contribution to be paid to the fund by each insurer up to an amount not exceeding 2% of the gross premiums paid to the insurer, in respect of policies issued in respect of risks in the State.

Subsection (2) requires the bank to publish on its website any decision to levy insurers and to deliver a notice to each insurer specifying the date from which the levy will commence, the percentage contribution to be paid and the person to whom it should be paid.

Subsection (3) requires the insurance company to deliver to the collector a statement in writing showing the aggregate of gross premiums paid in that quarter in respect of risks in the State and to pay the appropriate contribution based on the gross premiums.

Subsection (4) requires the collector to pass the money received on to the fund after deducting its costs and to inform the bank of who has been paid and what is the contribution.

Subsection (5) requires the collector to inform the bank if it is the view that a company has not paid its appropriate contribution.

Subsection (6) provides the bank with the power to recover any contribution not paid by an insurer and to take appropriate action against the company.

Subsection (7) requires the bank to transmit any money to the fund recovered as a result of the action taken under subsection (6).

Subsection (8) requires the bank to publish on its website any decision to levy insurers and to deliver a notice to each insurer specifying the date from which the levy will cease. It also provides the bank with the basis for reviewing the levy on a yearly basis, either to increase or to lower it or to allow it to continue at the same rate. Of course, it could only be increased if it were below 2% in the first instance.

Subsections (9), (10), (11) and (12), provide the legal basis for the offence provision in circumstances where an insurer does not pay the appropriate contribution.

Subsection (13) enables the Minister to appoint the Central Bank, the Governor or Commissioners or any other appropriate person, to perform the functions of the collector under this section.

Where the bank is appointed, then subsection (b) removes the obligation to inform itself which would otherwise arise. Where the Revenue Commissioners are appointed, subparagraph (c) ensures that if stamp duty moves to electronic collection, then the levy may also move to electronic collection.

Subsection (14) is a definition section which provides for defined terms for the purposes of the section. The obligations on the insurers to make payments are triggered with reference to the effective date, the date on which the original notice is published by the Central Bank or the dates on which amending notices are published under subsection (8). The definition premium ensures that policies cannot be taken outside the scope of the levy in the event they cover a risk outside the State as well as risks in the State. The definition of "quarter" operates to govern the period during which contributions must be paid.

The Deputy asked about a three month notice which must be given when it is signed.

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