Pearse Doherty (Donegal South West, Sinn Fein)
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Question 75: To ask the Minister for Finance where the money paid out from promissory notes starting in March to Anglo Irish bank and Irish Nationwide Building Society and in June to EBS was acquired from; if this money adds to annual expenditure; if he has included this yearly expense into the cost of running the State in 2011; and if he will make a statement on the matter. [3041/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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1I provided for the injection of capital totalling €25.3 billion into Anglo Irish Bank in 2010, by way of a Promissory Note. Under the terms of the Promissory Note, 10 per cent of this amount – or €2.53 billion – shall be paid in March each year and the first such payment falls due at the end of March 2011. This payment will be made from the Central Fund and is factored into the non-voted capital expenditure estimates in Budget 2011. Expenditure from the Central Fund is funded through the collection of revenues and borrowing undertaken by the State.

In relation to the Irish Nationwide Building Society (INBS), I provided for the injection of capital amounting to €5.4 billion 2010. This comprised a €100 million cash injection in return for a Special Investment Share in the institution and €5.3 billion by way of a Promissory Note. The €100 million cash injection was funded from the Central Fund and is classified as non-voted capital expenditure in the end-2010 Exchequer Statement published by my Department on 5 January. Under the terms of the INBS Promissory Note, 10 per cent of this amount – or €530 million – shall be paid in March each year and the first such payment falls due at the end of March 2011. This payment will be made from the Central Fund and is factored into the non-voted capital expenditure estimates contained in Budget 2011.

In relation to the Educational Building Society (EBS), I provided for the injection of capital totalling €875 million in 2010. €625 million of this was provided by way of a cash injection from the Central Fund in return for a Special Investment Share in the institution, and is classified as non-voted capital expenditure in the end-2010 Exchequer Statement published by my Department on 5 January.

The remaining €250 million is being provided to EBS by way of a Promissory Note. Under the terms of the EBS Promissory Note, 10 per cent of this amount – or €25 million – shall be paid in June each year and the first such payment falls due in mid-June 2011. This payment will be made from the Central Fund and is factored into the non-voted capital expenditure estimates contained in Budget 2011. There was no expenditure from the Central Fund associated with these Promissory Notes in 2010. By providing the capital injections in the form of Promissory Notes, the cost is spread out over a lengthy period and is therefore manageable in the overall budgetary context.