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

I can confirm for the Deputy that my Department takes very seriously its responsibilities in regard to safeguarding the State's assets and maximising the return to the taxpayers of the funds invested on their behalf. In this regard, a number of directions have been issued to the National Pensions Reserve Fund Commission, NPRFC, since the directed investments were acquired pursuant to my powers under Investment of the National Pensions Reserve Fund and Miscellaneous Provisions Act 2009.

The initial directions were issued in 2009 and these have now been superseded by directions given in 2010 and 2011. The 2011 directions require the NPRFC, on an ongoing basis, to notify the Minister for Finance in advance of all corporate actions, meetings or other exercise of voting or other rights the NPRFC has as a shareholder and exercise those rights in accordance with ministerial instructions; exercise its rights as a shareholder to require the bank to convene a general meeting if instructed to do so by the Minister for Finance; not dispose of the directed investments without instructions from the Minister of Finance; and take any action necessary to appoint or remove or maintain the directors as directed by the Minister for Finance from time to time.

The section of the NPRFC Act 2000 - consolidated to 1 October 2012 - that governs voting instructions is section 19B. This section requires the NPRFC to notify me in advance of any meetings or other exercise of voting rights as shareholder and they then vote or exercise those shareholder rights in accordance with my specific or general instructions. Analysis and advice is provided by my Department in regard to the votes cast by me and also in regard to actions taken by me as shareholder.

I reassure the Deputy that when I am entitled to vote or act as shareholder in respect of the State supported banks, I weigh up all the relevant facts and decide in the best interests of the taxpayers who have invested enormous sums in order to support these banks given their vital role in our economy.

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