§ Mr. ParryTo ask the President of the Board of Trade (1) what plans he has to accept Government responsibility for compensation for terrorist activities on the British mainland on the basis of the rules in force in Northern Ireland; and if he will make a statement;
(2) if he will meet the Association of British Insurers to discuss the implications of the withdrawal of insurance cover for terrorist attacks on premises in Great Britain.
§ Mr. Neil Hamilton[holding answer 11 January 1993]: The President of the Board of Trade made an announcement on 21 December that the Government have decided in principle to act as reinsurer of last resort for terrorist attacks against mainland GB non-domestic property and related risks from January 1993. This has enabled insurance companies to continue to offer insurance cover for terrorist attacks, with insurers being able to buy the necessary cover as a separately rated risk. As an insurance solution to the problem has been provided in agreement with the Association of British Insurers, the question of Government compensation does not arise.