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 Header Item Written Answers Nos. 89-100
 Header Item Plean Teanga
 Header Item Public Procurement Regulations
 Header Item Financial Services Regulation
 Header Item Deposit Guarantee Scheme
 Header Item Banking Guarantee Scheme Liabilities
 Header Item IBRC Liquidation
 Header Item IBRC Liquidation
 Header Item IBRC Liquidation
 Header Item IBRC Liquidation

Thursday, 4 July 2013

Dáil Éireann Debate
Vol. 809 No. 4

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Written Answers Nos. 89-100

Plean Teanga

 89. D'fhiafraigh Deputy Éamon Ó Cuív Information on Éamon Ó Cuív Zoom on Éamon Ó Cuív den Aire Airgeadais Information on Michael Noonan Zoom on Michael Noonan an bhfuil sé i gceist aige a chinntiú go mbeidh suíomh idirlín na nDuaisbhannaí dhá-theangach; agus an ndéanfaidh sé ráiteas ina thaobh. [32711/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan Cuireann Gníomhaireacht Bainistíochta an Chisteáin Náisiúnta in iúl dom nach bhfuil aon phlean i gceist faoi láthair leagan dátheangach de shuíomh idirlín na nDuaisbhannaí a chur ar fáil. Tá beartaithe áfach ag Cuideachta na nDuaisbhannaí Teoranta aon chomhfhreagras a fhaigheann sí i nGaeilge a fhreagairt i nGaeilge feasta.

Public Procurement Regulations

 90. Deputy Éamon Ó Cuív Information on Éamon Ó Cuív Zoom on Éamon Ó Cuív asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the number of projects that were approved funding by his Department conditional on a bond being produced from a builder; the amount of the default by builders where such bonds were in place; the amount recovered through the use of bonds in such cases; and if he will make a statement on the matter. [32719/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan In response to the Deputy’s question I am not aware of any projects that were approved funding by my Department conditional on a bond being produced from a builder.

Financial Services Regulation

 91. Deputy Éamon Ó Cuív Information on Éamon Ó Cuív Zoom on Éamon Ó Cuív asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan if he has commissioned independent advice to assess if the information being given to him by the Financial Regulator and the Central Bank in relation to the banking sector is accurate and correct; the source of such independent advice if any; and if he will make a statement on the matter. [32734/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan As regulator for the financial sector, the Central Bank has extensive information gathering powers in statute to ensure its ability to gather, verify and challenge information provided to it by financial firms or otherwise acquired by it through inspections, audits, reports and other means. The capacity of the Central Bank in this respect has been further enhanced under the Central Bank (Supervision and Enforcement) Bill, which is expected to be enacted shortly.

A key lesson from the financial crisis is that it is important that key regulatory information is made available to policymakers to ensure that decisions are based on accurate and robust data and analysis. My Department works closely with the Central Bank to ensure that this is the case. I have not commissioned an independent assessment of information provided by the Central Bank to me or my department; that is not to say that the information is accepted at face value without proper scrutiny and, where appropriate, challenge. However, I am not altogether convinced that relying on such third party assessment would address the core of the issue, particularly in light of experience of the financial crisis regarding supposedly objective third party analysis from auditors and credit rating agencies, for example.

Nevertheless a core focus of recent reforms by the Government and the Central Bank itself has been on enhancing the access to information by the Central Bank and its capacity to provide timely and reliable information and analysis to support sound decision making. Central Bank staffing resources have increased significantly in recent years, as has its investment in technology and training, all of which should enhance the quality of information and analysis it is able to provide.

Deposit Guarantee Scheme

 92. Deputy Éamon Ó Cuív Information on Éamon Ó Cuív Zoom on Éamon Ó Cuív asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the estimated potential exposure to the State in 2008 arising from the guarantee on deposits up to €10,000, as long as that guarantee existed; and if he will make a statement on the matter. [32735/13]

 93. Deputy Éamon Ó Cuív Information on Éamon Ó Cuív Zoom on Éamon Ó Cuív asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the estimated potential exposure to the State in 2008 arising from the guarantee on deposits up to €100,000; and if he will make a statement on the matter. [32736/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I propose to take Questions Nos. 92 and 93 together.

The Deposit Guarantee Scheme covers deposits by individuals in participating credit institutions. All deposit-taking credit institutions in Ireland are required by law to participate in the Deposit Guarantee Scheme. The Deposit Guarantee Scheme operates across the EU so deposits with credit institutions from other EU Member States operating in Ireland were similarly guaranteed in 2008. Coverage levels and the scope of Deposit Guarantee Schemes have been harmonised across the EU since 2009.

In the event of a credit institution being unable to repay deposits, the Central Bank is currently authorized to make compensation payments to eligible depositors to a maximum of €100,000 per person per institution.

The Deposit Guarantee Scheme is funded by a charge on the credit institutions participating in the scheme. The cost of compensation payments is met from the balances in the Deposit Protection Account. In the event of the Deposit Protection Account being insufficient to fund a compensation event, any difference is made up using advances from the Central Bank or the State; the remaining participating institutions are then responsible for the repayment of these advances.

The Deposit Guarantee Scheme initially covered deposits up to €20,000. The coverage level of €20,000 was revised, initially by a statement by the Minister for Finance on 20 September 2008 and subsequently under the Financial Services (Deposit Guarantee Scheme) Act 2009, to increase the coverage to €100,000 per person per institution.

The Central Bank of Ireland advises me that it does not have data on the potential exposure as at 2008. While it had figures on the total deposits held by financial institutions in 2008, it did not have the technical capacity or powers to provide the information in this way. This matter has since been addressed in the Central Bank (Supervision and Enforcement) Bill 2011.

As no compensation events occurred in 2008, it was not necessary to draw down from the Deposit Guarantee Scheme in 2008.

Banking Guarantee Scheme Liabilities

 94. Deputy Éamon Ó Cuív Information on Éamon Ó Cuív Zoom on Éamon Ó Cuív asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the estimated potential exposure to the State in 2008 broken down between deposits, tier-one bonds and subordinated bonds arising from the blanket guarantee given at the end of September 2008; and if he will make a statement on the matter.  [32737/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan The Deputy will be aware that details of bank funding profiles, including a breakdown of the aggregate amounts of tier 1 bonds and subordinated bonds and other covered liabilities for any given period, received by my Department in the course of official communications and which are not a matter of public record are commercially sensitive.

Information on the breakdown of the total of covered liabilities on 30 September, 2008, is available on public record as published in the Nyberg Report (page 77) in March 2011 http://www.finance.gov.ie/documents/publications/reports/2011/nybergreport.pdf. Though this information is not classified in the terms specified by the Deputy, I repeat the figures from the report for the Deputy’s convenience.

Bank Profiles
Customer Deposits€173.2bn
Interbank Deposits€49.1bn
Senior Unsecured Debt€124.2bn
Financial Instruments€0.7bn
Asset Covered Securities€15.8bn
Dated Subordinated Debt€12.2bn
Total€375.2bn

IBRC Liquidation

 95. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the remuneration paid to the special liquidator and the firm of KPMG in fees to date arising out of the liquidation of Irish Bank Resolution Corporation.  [32757/13]

 96. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the budget for the expected total remuneration for the special liquidator at Irish Bank Resolution Corporation. [32758/13]

 108. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the expected cost for professional fees for the special liquidation of Irish Bank Resolution Corporation for third party fees from the date of the appointment of the special liquidator. [32772/13]

 109. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan if he will provide an update on the actual level of legal fees incurred from the date of the appointment of the special liquidator to May 2013.  [32773/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I propose to Questions Nos. 95, 96, 108 and 109 together.

I have been advised by the Special Liquidators that they are unable to provide an estimate of the total remuneration payable to them or to any third party in the special liquidation of IBRC at this time. The Department of Finance is in regular contact with the Special Liquidators and is closely monitoring the progress of the liquidation. Weekly meetings are held at which the Special Liquidators provide an update on key developments and outstanding issues. Furthermore a monthly report is furnished to the Department detailing the progress on all matters in relation to the liquidation including the valuation and sales process, finance, deposits, derivatives and hedging, legal issues and litigation, HR, IT operations, compliance and governance and overall project management.

I am advised by the Special Liquidators that they will comply with their reporting obligations in relation to the reporting of their fee, of legal fees and other third party fees. As such returns will be filed with the CRO after two years of the liquidation and yearly thereafter as required.

IBRC Liquidation

 97. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan if he will confirm that professional fees due to various firms including (details supplied) at the date of the appointment of the special liquidator have been paid and the amounts; and if he will confirm that any such professional fees due and unpaid as the date of the appointment of the special liquidator in February 2013 will rank with other creditors as unsecured. [32759/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan Due to commercial confidentiality and sensitivities, and also solicitor/client confidentiality, I have been advised by the Special Liquidators that they do not propose to provide details of amounts due and paid by IBRC (in Special Liquidation) to Arthur Cox and/or Ernst & Young.

The Special Liquidators have advised that any amounts owing to these firms prior to the liquidation or any payment outstanding at the conclusion of the liquidation will rank as unsecured.

IBRC Liquidation

 98. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan if he will disclose the details and amount of all creditors paid in six months to the date of the appointment of the special liquidator at Irish Bank Resolution Corporation in February 2013. [32761/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I am advised by the Special Liquidators that for commercial sensitivity reasons they will not be disclosing this information at this time. However, I am advised that the Special Liquidators will fully comply with their reporting obligations in relation to the reporting of liquidation expenses in due course. As such returns will be filed with the CRO after two years of the liquidation and yearly thereafter as required.

IBRC Liquidation

 99. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the number of legal cases the special liquidator is involved in as a plaintiff and if he will quantify the number of cases; the amount involved and the financial provision that has been made to cover the special liquidator's legal costs in taking these cases. [32762/13]

 100. Deputy Pearse Doherty Information on Pearse Doherty Zoom on Pearse Doherty asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan the number of legal cases the special liquidator is involved in as a defendant; and if he will quantify the number of cases and the amount involved and the financial provision that has been made to cover the special liquidators legal costs in defending these cases. [32763/13]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I propose to take Questions Nos. 99 and 100 together.

I have been advised by the Special Liquidators that there were 120 cases being taken against IBRC at the date of liquidation. Furthermore, there were 720 cases being taken by IBRC (in Special Liquidation) against a variety of defendants but primarily against borrowers, former staff and former professional advisors.

Due to commercial confidentiality and sensitivities, the Special Liquidators are unable to disclose the amounts involved and the financial provisions in place for legal cases.


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