Joan Burton (Dublin West, Labour)
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Question 130: To ask the Minister for Finance the legal status of the relationship framework, signed on 8 July 2009, between the Minister and Anglo Irish Bank Corporation Limited; the conflicts between ministerial objectives A and B, as set out in the relationship framework; and if he will make a statement on the matter. [16315/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The statutory origin of the relationship framework, signed on 8 July 2009, between the Minister and Anglo Irish Bank Corporation Limited lies in Section 3 of the Anglo Irish Bank Corporation Act 2009. In the interests of facilitating compliance with EU State aid and competition policy, the Relationship Framework recognises the separation of Anglo Irish Bank from the Minister and limits intervention by the Minister in the conduct of Anglo Irish Bank's day to day commercial activities. The Relationship Framework may be amended by the Minister as he sees fit, subject to EU consent.

The Relationship Framework is concerned centrally with the alignment of the activities of Anglo Irish Bank with key ministerial objectives which seek to protect the public interest. There is no conflict between the express ministerial objectives, to preserve the capacity of Anglo Irish Bank to continue its operations as a going concern and progressively enhance its financial position and viability to an extent where it can operate without support from the State and to minimise cost and other risk to the public, both of which form but part of a series of key objectives which seek to serve and promote the public interest. Both of the key objectives identified mutually inform one another and serve the protection of the public interest.

As I have outlined on previous occasions, the consequences of an immediate winding up of Anglo Irish Bank would be very severe. It is estimated that to wind up Anglo Irish Bank would lead to a fire-sale of assets resulting in a permanent additional and unnecessary loss of upwards of €30 billion. In addition, the State would have to provide in the order of €70 billion up-front to meet deposits, bondholders and the liabilities due to the Eurosystem. A revised restructuring plan for Anglo Irish Bank is being prepared for submission to the EU Commission under State aid rules. This will explore all options for the future of the bank and it is my main concern to ensure that the interests of the taxpayer are paramount in the plan.