Written answers

Thursday, 14 July 2011

8:00 pm

Photo of Shane RossShane Ross (Dublin South, Independent)
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Question 83: To ask the Minister for Finance the position regarding the selection process for appointment of new board directors to the banks; and if he will make a statement on the matter. [20590/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Some 480 expressions of interest were received by the closing date specified in response to the advertisement to the commitment in the Programme for Government to construct a pool of experienced directors to be inserted into non-executive positions in banks receiving State support. The shortlisting and evaluation work on this large volume of applications is at an advanced stage. The Deputy can expect new and fresh appointments to be made as the months progress to ensure that the boards are fit for purpose to play their vital role in the necessary restructuring of the pivotal banking sector.

Any proposed appointments will, as the advertisements stated, be subject to regulatory approval. The Deputy will be aware that the Central Bank of Ireland has announced that it intends to assess candidates, for such director appointments, against the new fitness and probity standards which the CBI envisages being implemented by 1 September 2011.

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 84: To ask the Minister for Finance the amount a person (details supplied) is being paid; if they are in receipt of a bonus; if so, the basis on which they have been granted same; and in view of the fact that they are a public servant being paid by the public purse and in line with recent Government recommendations in regard to transparency, if he will give full disclosure of these details. [20670/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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At the outset, I should state that the relationship between Anglo and the Quinn Group is a commercial one. Under the Relationship Framework put in place under the Anglo Irish Corporation Act 2009, which governs the relationship between the bank and its shareholder the State, issues relating to commercial activities at the bank are a matter for the board in respect of which, as Minister for Finance, I have no role in day to day management decisions. Consequently, I am not privy to the information that the Deputy is requesting in relation to the remuneration details of the individual in question. It should also be noted that I have been advised that the person in question is not a public servant as he is not employed by a State entity. His appointment was a matter for the board of Quinn Group Ltd in conjunction with key stakeholders namely the Banks, Bondholders and Anglo.

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 85: To ask the Minister for Finance the cost of the entire situation that Anglo has created in regard to the Quinn Group to the taxpayer to date, including legal fees for Anglo, including those in a foreign jurisdiction, and the cost of all the consultants engaged (details supplied). [20671/11]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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At the outset, I should state that the relationship between Anglo and the Quinn Group is a commercial one. Under the Relationship Framework put in place under the Anglo Irish Corporation Act 2009, which governs the relationship between the bank and its shareholder the State, issues relating to commercial activities at the bank are a matter for the board in respect of which, as Minister for Finance, I have no role in day to day management decisions. Consequently, I do not have any information in relation to Anglo's costs to date in its effort to recover the debt owed by the Quinn Group. However, I would expect Anglo to be conscious of obtaining best value and before engaging advisors to make comparative choices as part of their procurement process. In relation to the Deputy's second question, it should be noted that in assessing the bids for the business of QIL, the Joint Administrator's were required to consider how best the interests of policyholders could be protected and how the company could be returned to a sound commercial footing. These were the criteria on which the decision to opt for Liberty/Anglo deal was made by the Joint Administrators under the powers given to them by the 1983 Insurance (No. 2) Act. Consequently, the recovery of the money owed to Anglo by the Quinn Group would not have been a factor in their considerations.

The Joint Administrators did however conclude that the Quinn proposal was highly conditional in nature as it depended, amongst other things, on the State intervening to facilitate the transfer of €2.8bn of debt from Anglo to one of the viable banks and to require that bank to provide a further €500m loan to the Quinn Group, as well as agreement with the bondholders. As such they saw no likelihood for such a proposal being facilitated in the current economic climate, as the taking on of such loans by other banks was likely to compound their already difficult position and in addition would also be likely to contravene European State Aid rules. They were also of the view that reaching agreement with the bondholders in relation to the releasing of the guarantees over QIL assets was going to be extremely difficult if not close to impossible. Accordingly, in this context it is difficult to see how the Quinn proposal could be seen to be more effective in recovering the Anglo debt.

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