Results 24,441-24,460 of 27,945 for speaker:Michael McGrath

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: I wish to clarify what I interpret Mr. Duffy as saying. Apart from the possibility of the ESM taking a direct stake in AIB sometime in the future, even at this point the bank is engaging with potential investors explaining its strategy for getting back to profitability with a view to them potentially investing in the equity of the bank in a couple of years time or beyond. Is that...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: At this remove is AIB neutral on whether that investment could come from the European Stability Mechanism or whether it could come from stand-alone foreign investors taking stakes in the bank? How would Mr. Duffy feel about AIB being owned and run by the ESM?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: Before I move on to the issue of mortgages, I wish to ask about pensions. Mr. Duffy referred to - it is also outlined in the details AIB sent us - the difficulties the bank is experiencing in respect of the defined benefit pension scheme. It is moving to a defined contribution scheme. Last weekend the Sunday Independent reported on the pensions being paid to former politicians, which are...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: Has that happened yet?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: How are these particular pensions funded? Does the money come from a separate AIB executive defined benefit pension scheme? Is it separate from the normal scheme AIB is changing from a defined benefit to a defined contribution scheme? Is there a specific executive pension scheme?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: Am I correct in saying that is the same scheme that has benefited from the transfer of the €1.1 billion of loan assets transferred from the bank to the pension scheme in order to meet its funding requirements and future pension liabilities?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: Essentially, money that is owed to the bank by its debtors, instead of being repaid to the bank, is being paid into a pension scheme which will now fund the payment of enormous pensions to Mr. Sheehy, Mr. Doherty and many others. Is that the case?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: I wish to move on to the issue of mortgages. In the questionnaire submitted AIB has indicated that even at a 4% standard variable rate for mortgages, variable mortgages are still loss making. In the presentation Mr. Duffy has pointed out that the cost of funding now is 2.79%. I presume he is taking into account ELG costs, bad debt provision, etc. in saying that even at 4%, the bank is...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Michael McGrath: I welcome Mr. Duffy and his colleagues from AIB and thank him for all of the information he sent which we have had the opportunity to go through in preparation for the meeting. As I am limited in time, I will move as quickly as I can through the key issues I want to raise. As Mr. Duffy will be aware, the State has injected €20.7 billion into AIB and the EBS in the past few years....

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: Can I ask about the impact of the promissory note? I understand the IBRC is a passive participant, as such, and the negotiations are between the Government and the European Central Bank. Mr. Dukes said the final bill for the Anglo Irish Bank element of IBRC may be affected by any restructuring of the promissory note. What did he mean by that? Is he involved in the discussions that have...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: In his opening statement, Mr. Dukes stated the IBRC owes €42 billion to the Central Bank and other monetary authorities. The promissory note money the bank receives every year goes to pay down its emergency liquidity assistance, ELA, to the Central Bank. Is there a schedule agreed with the Central Bank on the repayment of that ELA? Obviously, the IBRC would be able to settle all its...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: In his opening statement, Mr. Dukes spoke of how high-profile borrowers are dealt with, and he referred to me. I intend to raise the issue of the evidence that emerged in the High Court case in London involving Mr. Paddy McKillen and the Barclay brothers about text messages sent by Mr. Aynsley to Mr. McKillen conveying a board decision. Perhaps this was put into the public domain to...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: One departure from the practices of the past in the institutions Mr. Aynsley inherited is how hospitality is dealt with. I know the bank has a very clear policy that, in general, directors and employees must not accept gifts or the conveyance of anything of value, including entertainment, from current or prospective banking customers or suppliers. Is that fully adhered to in IBRC?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: I welcome Mr. Dukes, Mr. Aynsley and their colleagues from the IBRC. I thank Mr. Dukes for his opening statement and the schedule of information we received in advance. I will start on a broader level in terms of the overall cost and the final bill, which Mr. Dukes addressed in his opening. He said it would be close to €25 billion as opposed to the €29 billion to €34...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: I am trying to get clarity on the overall figures. The estimated liability in INBS when it was recapitalised through the promissory note was of the order of €5.4 billion. As regards that element of the IBRC, is it anticipated that that cost will be broadly correct?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: That is entirely accepted. There are a whole load of moving parts here - I fully appreciate that - but we do have to probe what Mr. Dukes's best estimate is, based on certain assumptions at this point in time. His hope is that the final bill for the Anglo Irish Bank element of the IBRC will come in at around €25 billion. The INBS will still cost, as originally expected, in the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: What types of assumption has Mr. Dukes made in coming up with that estimate? He referred to what will happen in the property market, which will obviously be a key factor in both Ireland and the UK, as well as the general economic performance. What assumptions has he made about property prices over the next ten years in arriving at the estimate of a final bill of €25 billion?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Michael McGrath: I am asking broadly, in terms of a recovery in the property market.

Written Answers — Department of Children and Youth Affairs: Youth Unemployment (25 Oct 2012)

Michael McGrath: To ask the Minister for Children and Youth Affairs in view of her recent welcome for the draft joint report from the EU Commission and Council of Ministers on the implementation of the EU Youth Strategy, the action she will take to ensure an increased youth policy focus on contributing to Europe 2020 growth agenda with particular regard to measures to support youth employment; and if she will...

Written Answers — Department of Public Expenditure and Reform: Capital Expenditure (25 Oct 2012)

Michael McGrath: To ask the Minister for Public Expenditure and Reform the voted capital expenditure allocated to each Department for 2012; the amount of that funding that has been spent by the end of September 2012; and if he will make a statement on the matter. [46998/12]