Results 9,981-10,000 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: -----but what was done in Cyprus on a pilot basis became European law subsequently.

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 Deputy's point is the other way around.

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 the other way round, in spite of the Cypriot authorities.

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. After the 8%, which I understand will become operational from 16 January, the next phase is sovereign resolution funds. The sovereign resolution funds in year 1 are sovereign resolution funds but then there is an agreement to mutualise them over a period of time when one is beginning to get access to one's neighbour's resolution fund. As they mutualise the funds, the taxpayer goes out...

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: 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: They are more inclined to call them modalities rather than rules. That is how it is geared up.

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: Obviously, the ESM has been in operation for some time. This is a new power it is being given to directly recapitalise banks in certain circumstances. The governors will decide the methodology and the conditions that will attach when applications are made. However, it is not set down in primary legislation. As the relevant legal power will only be attached to the ESM treaty in November,...

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: If we take the direct as opposed to the retroactive recapitalisation of banks in the first instance - it must be remembered that the processes for both will be somewhat similar - if some unknown bank in an unknown country in the eurozone gets into trouble and if, as the Deputy outlined earlier, the bail-in model is followed, with shareholders being dealt with first, followed by junior and...

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 am giving the Deputy an example of what I think would happen under direct recapitalisation. Of course, I am speculating, but I am doing so on foot of the rule which states decisions will be made on a case-by-case basis and by mutual agreement. In such circumstances, the case must be presented in the first instance and then the decision can be made. In the case of the unknown bank in an...

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.