§ Mr. WorthingtonTo ask the Chancellor of the Exchequer (1) what steps his Department can take to safeguard payouts to sufferers from asbestos-related diseases following the collapse of Chester Street Insurance Holdings Limited; [147296]
(2) if he will make a statement on his Department's policy following the collapse of Chester Street Insurance Holdings Limited in respect of protecting the interests of sufferers from asbestos-related diseases; [147310]
(3) what discussions he is having with (a) Ministers and (b) the financial services industry following the collapse of Chester Street Insurance Holdings Limited; [147297]
182W(4) what action he is taking to ensure that those (a) who worked for publicly owned enterprises and have an asbestos-related disease and (b) with asbestos-related diseases relating to pre-1972 exposure, do not suffer adversely from the collapse of Chester Street Insurance Holdings Limited. [148916]
§ Miss Melanie Johnson[holding answers 29 January 2001]: The Government understand the concern of those suffering from asbestos-related disease as a consequence of employment in firms whose employees' liability insurance is provided by Chester Street Insurance Holdings Limited.
As a consequence of the insolvency of Chester Street Insurance Holdings Limited, provisional liquidators were appointed on 10 January 2001. At a meeting on 5 February a scheme of arrangement was agreed by creditors.
The Government expect the Policyholders Protection Board to work closely with the provisional liquidators and others to ensure claims are processed promptly; and that the PPB will ensure the provisions of the Policyholders Protection Act 1975 are implemented fully.
HM Treasury is monitoring the position by keeping in close touch with other Departments, the Policyholders Protection Board, the FSA and relevant parts of the financial services industry.
§ Mr. WorthingtonTo ask the Chancellor of the Exchequer (1) what role his Department played in the restructuring of the lion Trades Employers Association and the transfer of asbestos-related risks to Chester Street Insurance Holdings in 1989; [148914]
(2) if he will name the regulatory bodies that have been responsible for monitoring the affairs of the Iron Trades Employers Insurance Association Limited and Chester Street Insurance Holdings Limited since 1989; and what (a) actions they have taken and (b) reports they have made to him in that time. [149363]
§ Miss Melanie Johnson[holding answer 8 February 2001]: The prudentia1 supervision of insurance companies was the responsibility of the Department of Trade and Industry until 4 January 1998. On 5 January 1998, these functions transferred to the Treasury. On 1 January 1999, the Financial Services Authority became the prudential supervisor under a contracting-out order.
HM Treasury had no responsibility for the re-organisation of the Iron Trades Insurance Group in 1989 and, as far as I am aware, did not play any part in this.
§ Mr. WorthingtonTo ask the Chancellor of the Exchequer who will represent the Government at the creditors' meeting of Chester Street Insurance Holdings Limited on 5 February to safeguard interests of sufferers from asbestos-related diseases. [148703]
§ Miss Melanie Johnson[holding answer 7 February 2001]: The Government are not creditors and hence were not present at the meeting on 5 February. A representative of the FSA, as prudential supervisor of Chester Street Insurance Holdings Limited, had observer status at the meeting.