§ Mr. BercowTo ask the Chancellor of the Exchequer what the forecast average monthly cost of the airline insurance guarantee is. [7778]
§ Dr. CableTo ask the Chancellor of the Exchequer what the limit of Government contingent liabilities is under(a) Pool Re and (b) the cover provided to the aviation industry to insure against terrorist risk; and how these commitments will be reported in Government accounts. [8017]
§ Mr. BradyTo ask the Chancellor of the Exchequer what arrangements have been made with the airline industry to ensure that passengers travelling out of the UK while airline insurance is underwritten by Her Majesty's Government will be able to return to the UK after the expiry of the current arrangements. [7482]
§ Mr. Andrew Smith[holding answer 15 October 2001]: There is no limit to the Government contingent liability under the arrangements with the re-insurer, Pool Re, or the cover provided to the airline industry. Full details of the liabilities will be submitted to the Parliamentary Accounts Committee in accordance with normal procedures.
1263WThe cost of the airline insurance guarantee is mainly in the form of actual liabilities. Costs cannot be quantified in advance of any claim being made.
The airline insurance guarantee established by HM Treasury will run for 30 days from 11.59 GMT 24 September, and there is an option for renewal on seven days' notice for a further 30-day period if it is evident that adequate insurance is not available.