Michael Ring (Mayo, Fine Gael)
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Question 336: To ask the Minister for Enterprise, Trade and Employment if, in view of the existence of the export guarantee scheme as it applied to beef exporters here for some time, he will outline the period when the scheme was in operation; the amount paid under this scheme for each year that it was in operation; the names of the five recipients of the largest amounts of money per annum while the scheme was in operation; if there was subsequently any repayment of any of that money to the Exchequer by the recipient companies or individuals; and if he will make a statement on the matter. [13957/08]

Micheál Martin (Cork South Central, Fianna Fail)
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A State Export Credit Scheme was established under the 1953 Insurance Act, which provided export credit insurance to exporters, to cover against the risk of non-payment for their goods by buyers abroad and to encourage the export of Irish goods and services. The Scheme covered a wide range of risks up to 1991, when the Government decided to phase out State involvement in the provision of certain types of cover. In 1998, following a review of its operation, the then Tánaiste, Mary Harney TD announced that the State was withdrawing from all aspects of this scheme. Since its inception, the scheme insured exports valued at almost £6 billion.

In the years immediately preceding the wind-down, exports to Iraq featured very prominently in the cover supplied. Beef exports were a dominant, but not exclusive, sector given cover. Following the first Gulf war (Kuwait invasion) there was significant defaulting of payment for goods supplied and considerable payments were made on foot of the insurance policies held.

It should be appreciated that the Scheme was operated like any other insurance arrangement, i.e. the exporter paid a premium, calculated by reference to the risk being undertaken and then the State underwrote a policy. If the exporter failed to secure payment for their goods or services, then the policy paid out the agreed sum to the exporter. No further payment was due from the exporter. This debt then became the property of the insurer, i.e. this Department. Under the terms of the policy, efforts could subsequently be made by the Department, with the assistance of the exporter in certain circumstances, to secure payment of the debt.

In recent years the Iraqi authorities have offered limited payments on foot of these defaulted debts and the Department has been successfully pursuing recoveries on these debts, previously considered unrecoverable. To date a total recoupment of some €6.3 million has been achieved, the most significant recent recovery was €1.75 million in October 2007. It is anticipated that further progress in debt recovery under this Scheme will continue to be recorded.

An End of Year Account for Export Credit transactions is prepared by the Department each year which is finalised by the Comptroller & Auditor General. Copies of this Export Guarantee Account are laid before the Oireachtas.

The net deficit on the scheme is currently in the region of €27m, a figure which is reducing, as further recoveries are made. For confidentiality reasons, it has not been the practice to give details of settlements made to policy holders on foot of export credit insurance policies.

The following table sets out the amount paid out in claims from 1987 (details for the years prior to that date are not readily available).