HC Deb 07 August 1975 vol 897 cc532-3W
Mr. Hordern

asked the Secretary of Stare for Trade if he will make a statement about the position of policyholders of Fidelity Life Assurance.

Mr. Watkinson

asked the Secretary of State for Trade whether he will make a statement about Fidelity Life Assurance Limited.

Mr. Shore

At the end of 1974, my Department was not satisfied that the value of Fidelity Life's assets exceeded its liabilities, and on 14th January 1975 Fidelity Life undertook not to issue new policies. On 3rd April 1975, Fidelity Corporation purported to negate its guarantee to indemnify Fidelity Life in respect of any insufficiencies of assets to meet obligations to policyholders. I understand that this was because of the Bank of England's refusal to make good Fidelity Life's investment of £1 million with London and County Securities in which the Bank now has a 50 per cent. share-holding. The Bank of England takes the view that Fidelity Life's investment with that company cannot be regarded as a deposit made in the ordinary course of banking business, because of its size and the fact that it was made for a fixed term of five years.

By July 1975, my Department had concluded that there was no reasonable prospect of Fidelity Life being able to meet its liabilities to its policyholders and other creditors. On 11th July 1975, my Department informed Fidelity Life that, unless its assets were increased by at least £750,000 without any corresponding increase in its liabilities.

[See pursuant answer, 21st October 1975, Vol. 898, c. 148–9.]

Commodity Tons £ Thousand cif Principal Countries of Consignment
Whalemeat fish chilled or frozen:
1970 … … 19,204 2,196 Japan, Soviet Union and Canada.
1971 … … 15,526 1,854 Japan, Canada and Soviet Union.
1972 … … 8,871 1,080 Canada, Soviet Union and Iceland.
1973 … … 63‡ 9‡ Norway, Angola and Canada.
1974 … … 0 0
Whalemeat extracts:
1970 … … 1 0 South Africa.
1971 … … 0 0
1972 … … 0 0
1973 … … 0 0
1974 … … 0 0
Sperm oil unrefined:
1970 … … 14,114 1,261 Soviet Union, Australia and South Africa.
1971 … … 11,309 1,535 Australia, Netherlands and South Africa.
1972 … … 7,118 799 Australia, Netherlands and Soviet Union.
1973 … … 6,402 714 Australia, Netherlands and South Africa.
1974 … … 8,612 1,299 Australia, Japan and South Africa.
Sperm oil refined*
1970 … … 0 0
1971 … … 0 0
1972 … … 0 0
1973 … … 1,997† 252† South Africa, Norway and USA.
1974 … … 2,664 531 South Africa, Norway and France.
Whale oil (not including sperm oil) whether or not refined:
1970 … … 1,509 154 Canada, Norway and Netherlands.
1971 … … 802 87 Peru, Iceland and Norway.
1972 … … 876 70 Netherlands, Iceland and Norway.
1973 … … 52‡ 6‡ Norway and Irish Republic.
1974 … … 0 0