§ Mr. Trotterasked the Minister for Trade what arrangements are being made to meet claims for loss or damage arising from hostile action against merchant ships requisitioned or chartered in support of the task force for the Falkland Islands.
§ Mr. SproatClaims will be met from the Marine and Aviation Insurance (War Risks) Fund, which was established under section 5 of the Marine and Aviation Insurance (War Risks) Act 1952. The balance of the fund is currently £5.25 million. Claims for the loss of the "Atlantic Conveyor" exceed that amount and Parliament's approval will be sought in a Supplementary Estimate to make good the deficit in the fund. In the meantime, repayable advances of up to £4.5 million will be made from the Contingencies Fund so that settlement of these claims may be made in the next few days.
The Department of Trade's cash limit will be increased by £2,800,000 from £160,750,000 to £163,550,000. This increase will be met from the Contingency Reserve and will not, therefore, add to total public expenditure.