Results 17,021-17,040 of 27,019 for speaker:Michael Noonan

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: No, but it seems that different rules will apply to different cases. That is because it will be done on a case-by-case basis.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: I have a copy of the European Stability Mechanism Guideline on Financial Assistance for the Recapitalisation of Financial Institutions, Article 1 of which deals with scope.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: The guideline provides a reasonable indication of how matters will proceed. I draw the Deputy's attention to Article 14 - retroactive application of direct recapitalisation - which states: 1. This guideline is established without prejudice to existing ESM and EFSF programmes in which financial assistance has been provided to ESM Members who recapitalised their institutions, which could be...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: In the first instance, the word "direct" indicates that the ESM would provide money directly for banks without going through the sovereigns. If funding is channelled through the sovereign, it is indirect in nature. That is the significance of the use of the word "direct". If AIB is the example we are discussing, it must be stated it is a solvent bank which is trading profitably. For the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: On a case-by-case basis.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: First, without going back on it, I would not agree with the Deputy's résumé of historic events from June 2012 leading on, but I will let that sit. The Deputy asked how was I occupied? I was occupied in making sure that the commitment made in a press statement was translated into article 14 of the guidelines and I have succeeded in doing that. He will recall that in the middle of...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: I would not say that. I do not know about the Deputies themselves, but both of their parties told me on several occasions in the Dáil that the promissory note deal was mission impossible and could not be done.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: Europe is a difficult place, but there is a negotiating process and I am certainly not giving up. No way.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: What the Deputy is saying is not an observation; it is an allegation about what I am going to do.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: The ESM would get the shares and we get the money. If it worked out the way the Deputy describes, then in due course it would sell the shares and get its money back.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: Yes, over a period. The question Deputy McGrath asked was whether it would be valued at the present value. Obviously, we would argue that the money provided would be based on future value, with a reasonable estimate of capital gains over a period until the point of sale. Another way to do it might be to say that whatever capital gains one realises, we would have to get 50%, 60% or 70% of...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: It is not just the amount of money that is in question. It is also a case of who would be the bank directors.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: It could be a big bank in Europe.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: In the case of a bank, those involved would know how to run a bank. If we had a very successful bank running AIB then it might be a good solution. Alternatively, we could float it on the Irish market and ask Irish people to buy shares. That is another way of doing it.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: No. I have always said that we have no long-term interest in having a State banking system. The policy is that when the time is right, the values are right and the economy is going well we will put the banks back into private ownership. That is how we got the private investment into Bank of Ireland originally. We are down to 14% currently but we made it very clear that we wanted a...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: More or less, yes.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: It is a decision-making forum. They might decide to send an application to a sub-committee and let it come back and advise them. There are different ways of doing things, and we will not know the actual decision-making process until the first case goes before them. I have a note which might be of benefit. On 10 June 2014 the euro area member states reached a preliminary agreement on the...

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: I thank the Deputy.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: No. I did not say that I did not know whether we should apply. I have committed to applying, but I said I do not want to be tied to a timeframe on applying.

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Finance: European Stability Mechanism (Amendment) Bill 2014: Committee Stage (8 Oct 2014)

Michael Noonan: When we were discussing this, various amounts of money were suggested. A series of countries are involved, with the AAA rated countries saying to keep the figure down. The countries that believed they might need to avail of it were trying to drive it up. It was settled on €60 billion, but with all the other initiatives that were taken, the big game-changer, to use that word, is that...