§ Lord Kennetasked Her Majesty's Government:
Whether they consider the carriage of illicit drugs in ships, in containers or otherwise, is likely to increase or to decrease when shipowners are able to take out insurance with Lloyd's underwriters against being fined for carrying such drugs; and whether insurance against being fined is in accordance with public policy.
§ The Secretary of State for Trade and Industry (Lord Young of Graffham)I understand that certain Lloyd's syndicates offer cover to shipowners against the consequences of arrest or prosecution by the authorities in the United States where carriage of illicit drugs is suspected or discovered, including in certain circumstances cover against fines. All such policies are however void if the shipowner is convicted of being himself a party to, or having had knowledge of, the carriage of the drugs in question. Such policies for the protection of shipowners would not therefore appear likely to increase or decrease the carriage of illicit drugs or to give concern on public policy grounds.