Catherine Murphy (Kildare North, Independent) | Oireachtas source

The special liquidators of the Irish Bank Resolution Corporation are moving to sell the loan book as quickly as they can with substantial discounts. Just over 11,000 IBRC mortgage holders are owner-occupiers while just over 2,000 are in the buy-to-let category. I have been hearing from some of them who feel they are affected by this and whose loans are performing.

The Minister for Finance confirmed to me in a reply to a parliamentary question last week that it was intended to split the loan books into four distinct segments, namely, performing, non-performing, owner-occupier and buy-to-let, to maximise market interest. This comes after the special liquidator sought advice from PricewaterhouseCoopers. It is clear that only bids from big operators will be entertained. Of course, it was PricewaterhouseCoopers which was asked to assess the balance sheet of Anglo Irish Bank and the other core banks after the bank guarantee. The information it provided about the solvency and capital ratio of Anglo Irish Bank was critical to the decision to nationalise the bank in 2009. There is an issue of confidence in terms of where the information is being obtained.

The decision has been taken to dispose of the legacy of IBRC as quickly as possible. The Minister for Finance told us on budget day that there was no Anglo Irish Bank any more, but that is not quite the case. We must ensure there are protections for citizens against the excesses of the market.

The special liquidators have decided to dispose of the loan portfolio in blocks of 30 and 40, and I relied on an article in The Irish Times for that information. This has the effect of enabling large corporate debtors to buy out their loans at a discount. There is an inherent moral hazard on a number of levels to what is happening. It seems moral hazard is a concept invented for the small guy. Who is benefiting here? Will we see people who gambled as bondholders, perhaps foreign investors, and who were bailed out by this country coming back in to buy these loan books at a discount?

There is absolute fury among some of the people, in particular those directly affected by this, that this is again being done at the taxpayers' expense. Some people are being rewarded and being given a bargain opportunity. The only conclusion one can draw is that these people are getting an opportunity. They may well be the very people who had the benefit of us paying them in full, and now they are coming back to take more out of the pot at a discount. There is little or no risk to them because many of these loans are performing.

To be perfectly honest, the only people who seem to be rewarded in all of this are those in the big corporate sector. People who have mortgages that are performing are being bounced around the place and will be moved on under this plan. I have been contacted by several people who are absolutely furious about what is happening. I will be interested to hear what the Minister has to say on this matter.

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