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

We have debated the general point about protocols that apply to licensed entities, as set out by the Central Bank, being applicable to funds that purchase mortgages. With the disposal of the IBRC book, a number of private funds purchased mortgage books and agreed voluntarily to comply with the protocols as set down by the Central Bank. In different disposals, two mortgage books were sold and the purchasers agreed to comply with that. I accept that it is on a voluntary basis and that it is more satisfactory if it is founded in law. We will do that but this is complex legislation and we cannot produce complex legislation in a couple of weeks. In the Government's published list of proposed legislation for this session, 2015 is referenced in respect of this Bill but I am saying that it is a 2014 Bill. I do not think I will get it in before the summer but I will get it in during the next session. We will enact it in the next session. The Bill will make it mandatory for anyone purchasing loan books or mortgage books to comply with the protocols set out by the Central Bank.

The Greek issue is that the profits made by the Central Bank in trading Greek sovereign paper will be passed back to Greece. The Central Bank makes a profit and surplus profits are transferred to the Exchequer. The Central Bank will not take profit it makes in trading in Greek sovereign paper, nor will the Exchequer. The arrangement is that, when that part of the Central Bank surplus profit is transferred to the Exchequer, the Exchequer will pay it back to the Greeks. We are not profiting.

The reason we did not seek the same concession is that it is not a concession we are particularly interested in. We were negotiating other things at the same time. For example, the deal on the promissory note was of huge advantage to us. The extension of maturities on the official lending from European funds and the reduction in interest rates was of huge value as well. Different countries have different programmes and, in the course of negotiation, different concessions are made to different countries in the course of working through the programmes. We had set objectives and we were not going to chase something simply because the Greeks got it. The Greeks got a package at the time and this was one measure. It does not impinge very much on us because it is not a draw on the Irish taxpayer. We do not take the profit the Central Bank makes on trading Greek sovereign paper. Instead, the profit is rebated to the Greek exchequer. We will come back to the detailed issues on Committee Stage and I have no problem with Members tabling amendments.