Written answers

Thursday, 28 June 2007

5:00 pm

Photo of Eamon GilmoreEamon Gilmore (Dún Laoghaire, Labour)
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Question 27: To ask the Minister for Transport and the Marine if any air navigation undertaking has sought the grant or, if granted, the renewal of a ministerial indemnity in its favour under the Air Navigation and Transport (Indemnities) Acts 2001 or 2005, or both; if so, the identity of the undertaking concerned; his receipts and expenditure for each year since 2001 to date in 2007 in respect of arrangements under those Acts; the aggregate amount of the liabilities in respect of arrangements in respect of each such year under those Acts entered into during that year [17887/07]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Following the events of September 11th, aviation insurers worldwide withdrew 3rd party war and terrorist risk insurance from airlines, airports and ground handling companies. Without such insurance these undertakings could not operate and Governmental support was required. As a result the Air Navigation and Transport (Indemnities) Act 2001 was enacted which gave the Government power to insure air navigation undertakings by way of a Ministerial indemnity. The scheme ran from September 2001 to October 2002. As no incidents occurred that gave rise to claims, the State incurred no costs under the scheme other than administrative costs.

In June 2005, the European Commission informed Member States that the insurance industry had begun to withdraw insurance cover for acts of terrorism and war. In response the Oireachtas enacted the Air Navigation and Transport (Indemnities) Act 2005 to enable the Minister for Transport to act quickly in the event of insurance cover being withdrawn by the industry at short notice. The 2005 Act allows the Government in exceptional circumstances, to make an Order declaring that a state of difficulty exists, in relation to aviation insurance, where essential insurance is not generally available. To date there has been no application from any air navigation undertaking for the grant/issue of an indemnity under the 2005 Act.

As the receipts (in respect of insurance premiums) expenditure and the number of undertakings involved with this scheme relate to the 2001-2002 period it will be necessary to undertake a review of my Departments files and accounts in order to provide the Deputy with full details he has requested and I will revert to the Deputy with more detailed information when this is available.

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