Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I wish to emphasise that the reason these steps are being taken is entirely distinct from the performance or direction of the board or management of the IBRC. It is simply compelling in the larger public interest to now take this action and the Government has made its decision on that basis alone. I wish to acknowledge, with much appreciation, the significant efforts the directors and staff of the IBRC have made to the stabilisation of and maintenance of value in the IBRC. I regret the abruptness of how this decision is communicated to the management and staff but due to the scale, sensitivity and complexity of the economic issues involved, it was necessary in the public interest to keep the matter confidential until now.

Unfortunately, as is common in liquidations, all employee contracts will be terminated on the winding-up of the IBRC. However, it has been indicated to me that the majority of staff will, if they wish, be re-hired for the purposes of an orderly liquidation on such terms and for such duration as may be determined by the special liquidators. Employees will rank, in the normal way, as preferential creditors ahead of the National Asset Management Agency, NAMA, and unsecured creditors in respect of certain amounts owing on a winding-up, including accrued wages, salaries, holiday pay, sick pay, statutory redundancy, pensions contributions and claims for damages arising from accidents. I understand this announcement will come as quite a shock to employees of IBRC and to some of those who do business with the bank and the special liquidators will be instructed to handle that as well as possible in the circumstances.

I would have preferred to be introducing this Bill in tandem with a finalised agreement with the European Central Bank. However, I understand the European Central Bank will continue to consider the proposals made by the Governor of the Central Bank of Ireland, with the agreement of the Government, tomorrow. I commend the Bill to the House.

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