Paschal Donohoe (Dublin Central, Fine Gael)
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Question 137: To ask the Minister for Finance if the liabilities of the National Roads Authority form part of general Government debt; if NRA debt liabilities relating to contractual payments for public private partnership projects are calculated as part of our sovereign debt; his views that a failure by the NRA to meet such payments would constitute a credit event; and if he will make a statement on the matter. [12791/12]

Michael Noonan (Limerick City, Fine Gael)
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The NRA is within general government. Any loans and some other financial liabilities such as bonds of NRA therefore form part of general government debt. According to the NRA Annual Report the liabilities of the agency amounted to €17.6m in 2010. However, most of these liabilities are accounts payable and do not contribute to government debt. Neither do liabilities to private partners concerning future streams of payments form part of general government debt. The 2008 buy-out contract between NRA and National Toll roads of Westlink is, on the other hand, considered part of General Government Debt. These figures have formed part of deficit and debt figures of general government since 2008 Credit events cover a wide spectrum and can mean different things. With regard to PPPs, the NRA does have payment obligations. I am informed by them that all payment obligations to PPP private partners are being met.

Paschal Donohoe (Dublin Central, Fine Gael)
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Question 138: To ask the Minister for Finance if there exists a difference of ranking in the importance of debt obligations between Government bonds, promissory note repayments, State guaranteed bank bonds and the debt obligations of the National Roads Authority; and if he will make a statement on the matter. [12792/12]

Michael Noonan (Limerick City, Fine Gael)
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In relation to the ranking of debt obligations between Government bonds, promissory note repayments and State guaranteed bank bonds, section 48 of the Finance Act 1978 provides the following: "To remove doubt, it is hereby declared that any liabilities of the Minister for Finance, or of any other Minister of the Government with the consent of the Minister for Finance, of the due repayment of moneys borrowed by persons shall rank, and shall be deemed always to have ranked, pari passu in all respects with the liabilities of the Minister for Finance in respect of securities created and issued under section 54(1) of the Finance Act, 1970."

In relation to the National Roads Authority (NRA), under the Roads Act, 1993 the NRA may issue debt guaranteed by the Minister for Finance which would rank equally with all other debt obligations issued by the Minister or guaranteed by him. However, unguaranteed obligations of the NRA are not obligations of the State. It is not that they "rank" differently from those of the Minister, they are simply not his obligations and as such there is no equivalence between an NRA obligation and a bond issued under Section 54(1) of the Finance Act 1970 above.