Seanad debates

Thursday, 16 June 2005

Air Navigation and Transport (Indemnities) Bill 2005: Second Stage.

 

1:00 pm

Photo of Diarmuid WilsonDiarmuid Wilson (Fianna Fail)

I also welcome the Minister of State and his officials. This is important legislation. Since 11 September 2001, airplanes have become potential bombs. As a result, they have become a major risk for insurance companies, which have been sent diving for cover. The legislation will enable the Minister for Transport to issue indemnities to airlines, airports and essential service providers in the wake of the withdrawal by the worldwide insurance market of aviation insurance for damage caused by terrorist activities and "dirty bombs", which comprise chemical, biological and radioactive substances and electromagnetic pulses. Since the beginning of June 2005 the insurance industry worldwide has begun to withdraw cover from aircraft hull and it is, therefore, necessary for the Government to enact this emergency legislation to enable aircraft to continue flying.

I have a number of concerns. The Minister of State said the State's liability is limited to €9 billion, which is an enormous amount for a small State such as ours. He also said it is possible the aviation industry in Europe will establish a mutual insurance fund, which will eventually eliminate the need for state support. This should be pursued by the Government as a matter of urgency. This represents too large a risk for the State to undertake and I urge the Minister of State to work with his colleagues in Europe to establish this fund as speedily as possible.

I thank the Minister of State and his officials for the work they have put into the legislation. I support its passage through the House.

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