Mr. Wm. Rossasked the Secretary of State for Northern Ireland if he is aware that claims for terrorist damage in Northern Ireland sometimes take many months before settlement and that business men are suffering financial loss through interest charges during this period, which results in a loss of efficiency in the business life of Northern Ireland; and if he will take steps to relieve the burden of interest charges in such cases.
§ Mr. Merlyn ReesI assume that the hon. Member has in mind interest charges incurred by a victim of damage who lacks capital to finance the reinstatement in repair of his property in the period between its damage and the award of compensation.
Claims for compensation for such damage to property in Northern Ireland fall to be settled, according to the date of damage, either under the Criminal Injuries Acts (Northern Ireland) 1956 to 1970, under which their determination is a matter for the courts, or under the Criminal Injuries to Property (Compensation) Act (Northern Ireland) 1971, under which there is a right of appeal to the courts from my determination of compensation.
While I am always anxious to do whatever is reasonably practicable to expedite the determination of the very large number of claims which have been submitted I have no plans to add to the very considerable cost of this compensation, already approaching£30 million a year, by introducing legislation specifically to override the long-established rule of the courts that interest charges of this kind are not compensatable.
Furthermore I consider that adequate arrangements exist through an emergency finance scheme which is available to assist business men to restart their trading activities quickly after their premises have been damaged. Advance payments of compensation may also be made.