Michael McGrath (Cork South Central, Fianna Fail)
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77. To ask the Minister for Finance the date his Department officially requested advice from the Attorney General in relation to the collapse of a company (details supplied) following the decision handed down by the Supreme Court; when he expects that advice to be forthcoming; and if he will make a statement on the matter. [3568/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Setanta Insurance was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law.

As you are aware, the Supreme Court delivered its judgment on 25 May 2017 and overturned the previous decisions of the High Court and the Court of Appeal that the Motor Insurers’ Bureau of Ireland (MIBI) was liable in respect of third party motor insurance claims made against the policyholders of Setanta Insurance. The consequence of this is that the Insurance Compensation Fund (ICF) has been deemed responsible for the payment of such third party claims subject to a limit of 65% (or €825,000, whichever is the lesser) due to relevant claimants.

As I have previously indicated, there is a legal concern that any Government intervention to compensate third party claimants over and above the 65% limit, and then “step into the shoes” of these claimants to recover directly any balance due from the Setanta liquidation could result in the Government having a lower status in the creditor hierarchy, and thus significantly reduce the amount it could recoup from the liquidator.

In this respect, my Department initially sought advice from the Office of the Attorney General on 20 July 2017 and received a reply on 4 August 2017. Subsequent to this a procurement process was commenced to obtain the services of a Maltese law firm to provide advice in relation to this concern. Following the receipt of advices from the successful tenderer on 17 November 2017 and 5 December 2017, a further request for advice was sent to the Office of the Attorney General on 7 December 2017. The Office of the Attorney General provided this advice to my Department on 15 December 2017.

Subsequently, officials from my Department met with the Liquidator on 9 January and received an update on the current status of the liquidation process as well as the issues he is encountering in settling claims.  Based on this up to date information and the legal advices, the various courses of action open to the Government in relation to this issue are actively being considered.