HL Deb 28 April 1980 vol 408 cc1082-3

4 Schedule 2, page 12, line 42, at end insert— The Insurance Companies (Valuation of Assets) (Amendment) Regulations 1980 (S.I. 1980/5)".

Lord LYELL

My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 4. Since your Lordships last considered this Bill a new Statutory Instrument has been made under the Insurance Companies Act 1974 and indeed this has come into operation. This Statutory Instrument is called The Insurance Companies (Valuation of Assets) (Amendment) Regulations 1980. They were laid before Parliament on 25th January and they came into force on 15th February this year. Therefore they need to be added to the list in Schedule 2 of the secondary legislation that this Bill is extending to Northern Ireland. I am assured that no modifications are needed to take account of their extension. These particular regulations enable life assurance companies to elect to use the book value of their assets for the purpose of actuarial valuations which are required by the Act, rather than what we broadly call market values which result from determinations made in accordance with the principal Valuation of Assets Regulations. It is somewhat complicated, but I think the two concepts are reasonably simple.

In the intervening time I have received a brief answer to the noble Lord's query. I hope your Lordships will allow me to reply briefly to the noble Lord's question. I am informed that the Industrial Insurance Commissioner for Northern Ireland will report on the Northern Ireland figures, as indeed the noble Lord, Lord Blease, was asking. The Secretary of State for Trade will report on the United Kingdom basis, and that will include, of course, Northern Ireland. I understand that we are establishing a United Kingdom régime to cover both these aspects. I would hope therefore that the noble Lord's query is answered. Perhaps we could leave it there and if there is any point that is still uncovered we may settle it later. I beg to move.

Moved, That this House doth agree with the Commons in the said amendment.—(Lord Lyell.)