112 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she intends to take to safeguard thousands of jobs in small industry whose viability is threatened by massive increases in insurance premia; and if she will make a statement on the matter. [3313/02]

I am very much aware of the substantial increases in insurance premiums that many firms are facing and of the problems this is creating for them.

The pricing and underwriting of insurance is, however, a matter for individual insurance companies. EU law prevents us from intervening in relation to the matter of premium levels or in respect of what risks that they are prepared to underwrite. Insurers make decisions on provision of cover based on their assessment of that particular risk.

113 Mr. Yates asked the Tánaiste and Minister for Enterprise, Trade and Employment the outcome to her exploration in conjunction with the Office of the Attorney General in the United Kingdom and the European Commission on the implications of the closure of a company (details supplied) for Irish policyholders; and if she will make a statement on the matter. [3405/02]

Independent Insurance Company Limited is a UK authorised insurer. Accordingly, responsibility for ensuring that IICL could meet claims from its policyholders lay with the UK authorities that were responsible for the financial supervision of the company.

IICL is in provisional liquidation and that process must be dealt with under UK law. Companies with claims outstanding against IICL should pursue their cases with the provisional liquidators. Clarification obtained from the UK authorities indicates that private policyholders are, in principle, protected under the UK Policyholder Protection Act, subject to the policyholders meeting all of the other requirements of the UK Act, while Irish commercial policyholders are unlikely to be covered under that Act.

I appreciate the difficulties being faced by IICL policyholders. However, it would not be acceptable to burden Irish taxpayers with the inevitable cost that would be involved in meeting insurance claims, resulting from the failure of this UK company.