Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

To suggest this is something new is not honest. It has been well known since the passing of the Act that a number of issues would arise in the special liquidation process. Deputy Barry Cowen has mentioned two: one in connection with credit unions and the other in connection with development levies. The Houses of the Oireachtas have provided powers to the special liquidator to do his job, which is to ensure the orderly winding down of the operations of IBRC in a way that maximises the value of assets worth between €12 billion and €14 billion that still exist within the company. A liquidation process is under way. Deputy Barry Cowen is correct in stating that the creditors in the two categories he mentioned are unsecured, as is well known. I will not comment on any individual case. As I set out in my scripted reply, it is a matter in the first instance for local authorities to make contact with the special liquidator. I will not prejudge the outcome of that process as the issue is worked through. I agree with the Deputy that it would be the irony of ironies were it to transpire that homeowners who purchased homes in these circumstances would have to face the bills where estates are unfinished. The Government will consider this issue, particularly through the Department of the Environment, Community and Local Government, which has a special relationship with local authorities. The first task of the IBRC special liquidator is to resolve the issue.

The Deputy is correct to say that some credit unions could be caught by this, but many credit unions had the foresight to get out of this situation. There may be red faces due to timing or a failure to exit the bank well in advance given the fact that other institutions determined that they should do so. This is a normal liquidation and we should not automatically conclude from Deputy Cowen's remarks that people will be hung out to dry financially. We are aware of the circumstances and will work through the issue with other Departments as we see fit.

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