Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Question 158: To ask the Minister for Finance the position regarding the crisis in Irish Life and Permanent and his response to same; and if he will make a statement on the matter. [6902/11]

Michael Noonan (Limerick City, Fine Gael)
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I understand the Deputy's question relates to Irish Life and Permanent's sale of its insurance subsidiary, Irish Life Assurance. The Deputy will be aware from my statement of 31 March 2011 on banking matters that in order to satisfy the Central Bank of Ireland's capital requirements, Irish Life and Permanent must raise substantial equity capital and will require a significant restructuring of its business. The management of Irish Life and Permanent will produce a detailed capital plan to me shortly. However, the basic elements of the plan are clear and are reflected in the deleveraging plans it agreed with the Central Bank. Irish Life will immediately commence a process to sell Irish Life Assurance as well as other non-banking assets. As I informed the House previously, the life division of ILP is profitable. However, it is backing up an impaired banking system. It is being put on the market as a profitable insurance company and unless it is severed from the impaired bank, it will be contaminated by the banking system.