allations to provide securing for a
The stereotial increase in prenume re ruined to meet the high
level of insurance could have a major effect on the financial
riability of the installations concerned.
will
in unimpaired.
The position of
18.
is
oposed to take advantage of the changes Proposed by Article I. I ie, therefore, desired that the Secretary of State should be empowered, by order made by statutory instrument, to prescribe those installations or classes or installation which, he is satisfied, are not capable of causing damage likely to give rise to claims for compensation exceeding 25 million (excluding interest or costs,) in respect of any one occurrence constituting a breach
of duty under the 1965 Act. Counsel is also asked to provide that a lower level of liability and financial security (Sections 16 (1) and 19 (1)) should apply to those installations. It is expected that
that level will be £5 million to start with but will need to be variable in the way discussed below (Paragraph 37).
19.
Criteria for the selection of installations or classes thereof which may be prescribed for this purpose are presently being discussed and it is hoped that a draft order will be submitted to Counsel before the terms of the Bill are finally settled. Counsel's attention is drawn to the definition of "prescribed" in section 26 (1) which, mutatis mutandis, seems appropriate also to this proposal (Counsel will note that the functions of the Minister of Power have now been transferred to the Secretary of State: S.I. 1969/1498 and
*
1970/1537).
7