Finian McGrath (Dublin North Central, Independent)
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Question 88: To ask the Minister for Finance in relation to Quinn Insurance and the State's ability to cover its losses, the position regarding the funds collected over the years by way of levies charged on general insurance premiums; and if levies ranging between 1%-3% were charged on every Irish general insurance premium each year. [10228/11]

Michael Noonan (Limerick City, Fine Gael)
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In order to protect policy holders in the event of their insurer becoming insolvent, money can be raised by the Central Bank through the placing of a levy of up to 2% of an insurance company's aggregate income under Section 6 of the 1964 Insurance Act. A levy of 2% of gross premium income was introduced on 1 January 1984 following the collapse of PMPA in October of the preceding year. The levy was paid by all non-life insurers at this rate until 31 December 1991 and a reduced levy of 1% applied for the period 1 January 1992 to 31 December 1992, when it was discontinued as sufficient moneys had been collected to successfully complete the administration of the former PMPA.

This insurance levy is separate from the stamp duty on non-life insurance premiums introduced in 1982. The rate of stamp duty when introduced was 1%, rising to 2% in 1993 and further increased to 3% in the 2009 Supplementary Budget. This stamp duty forms part of general stamp duty receipts and is paid into the Central Fund along with other tax receipts.