Written answers

Tuesday, 1 May 2012

Department of Finance

Banking Sector Regulation

9:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 189: To ask the Minister for Finance further to Parliamentary Question No. 227 of 24 April 2012, if he or his officials are aware of the fees charged by a company (details supplied) to IBRC for their advisory services; if he or his officials sought to find out the fee charged by the company to IBRC once he or his officials became aware of this engagement; and if he will make a statement on the matter. [21764/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As already indicated the Board of the bank is responsible for the day to day operation of the bank including fees incurred in relation to the procurement of advisers. While I and my Department are aware of the bank's policy in relation to procurement it is not the practice to establish the cost of each individual arrangement the bank enters into. That said overall expenditure is monitored on an on-going basis through monthly management accounts, interim accounts and annual reports etc. and matters of concern are raised at an appropriate level.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 190: To ask the Minister for Finance further to Parliamentary Question No. 131 of 18 April 2012, if he will confirm whether IBRC travelled to London to meet a company (details supplied) before or after both IBRC and company became aware that the company were unsuccessful in their bid for the US loan sale portfolio; if he will outline whether the purpose of IBRC travelling to London to meet with the company concerned IBRC's desire to engage them for advisory work; if he will confirm the number of other unsuccessful bidders for the US loan sale portfolio with whom IBRC travelled to meet; if he will confirm the number of staff from IBRC who attended the meeting; and if he will make a statement on the matter. [21765/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware the Board of the bank is responsible for the day to day operation of the bank. I have no function in relation to routine meetings arranged or attended by staff of the bank, when those meetings took place or the number of staff from the bank attending such meetings. As the matter of the engagement of the company to which the Deputy refers has been the subject of a considerable number of Parliamentary Questions, it would appear that the Deputy has concerns relating to this engagement. As of yet, it does not appear that the Deputy is in a position to set out his concerns in a manner that will allow the matter to be comprehensively addressed. If the Deputy is concerned that something untoward has taken place or that some wrongdoing has occurred the Deputy should raise the matter with the relevant authorities. Alternatively, if the Deputy is in a position, having consulted with his sources, to set out his concerns I would be happy to refer the matter to the Board of the bank for consideration.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 191: To ask the Minister for Finance if he or his officials have met with the former MEP and Fine Gael member Pat Cox in his newly announced capacity as paid advisor to a company (details supplied)regarding the company providing a servicing platform for mortgages in Permanent TSB; if he will detail the date of such a meeting; and if he will make a statement on the matter. [21766/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I can confirm that neither I nor any officials from the Banking Division of my Department have met Mr Cox in his capacity as paid advisor to the company mentioned in the Deputy's question.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 192: To ask the Minister for Finance if he is concerned about Permanent TSB awarding a contract for the servicing of its mortgage to a company (details supplied) when two if its six shareholders were working in Bank of Scotland (Ireland) during its lending into the Irish property market and whose chief executive was a board member at Bank of Scotland (Ireland) during this period; and if he will make a statement on the matter. [21768/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Notwithstanding the State's shareholding in the bank, Irish Life and Permanent operates in an arm's length capacity from the State in relation to commercial issues. It is a matter for the board and management to determine and implement operational policy in their organisation. Therefore, commercial decisions such as these are solely a decision for the bank.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 193: To ask the Minister for Finance if Permanent TSB or AIB under their respective relationship framework agreements with him are required to seek approval from him before awarding contracts for the servicing of its loans by outside third parties such as a company (details supplied) who now have a former MEP and Fine Gael member as a paid advisor; if the awarding of such contracts by Permanent TSB or AIB would be subjected to a public tendering procurement process similar to the national Assets management Agency; and if he will make a statement on the matter. [21769/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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While the State holds a majority shareholding in both AIB and Irish Life and Permanent, they are not covered by formal public procurement rules as the banks' commercial remit makes them subject to market forces. Under the Relationship Frameworks the Boards of these banks' are responsible for the day to day operations of the bank including the awarding of contracts. Neither AIB nor PTSB are required to seek formal approval before awarding contracts of any nature, though certain other transactions do require Ministerial approval. The Relationship Frameworks were published on the Department of Finance website on 30 March 2012, the relevant links are published below for your convenience:

http://banking.finance.gov.ie/wp-content/uploads/Allied-Irish-Banks1.pdf

http://banking.finance.gov.ie/wp-content/uploads/Irish-Life-and-Permanent1.pdf

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 194: To ask the Minister for Finance if the chief executive of a company (details supplied) who now have former MEP and Fine Gael member as a paid advisor to seek Government contracts, will be subjected to a fitness and probity test by the Central bank of Ireland in view of their previous position as board member of Bank of Scotland (Ireland) ( during its period of lending into the Irish economy which continues to cause problems for the property market here; and if he will make a statement on the matter. [21770/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank of Ireland that the company referred to in the Deputy's question is not a regulated financial services provider and therefore neither the company nor its employees are subject to the Central Bank of Ireland's Fitness and Probity regime.

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 195: To ask the Minister for Finance if he will detail the impact the reported loan sale of Lloyds TSB, former Bank of Scotland (Ireland) of €400 million of Irish property loans at 75% haircut on their loan value could have for the National Assets Management Agency Irish loans sale and NAMA meeting its minimum objectives of redeeming all €30 billion of NAMA bonds in full during the lifetime of its operations; and if he will make a statement on the matter. [21771/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I am informed by NAMA that in developing their strategy for asset disposals they take account of any deleveraging that is occurring in the markets in which NAMA operates. I am reassured by the Board of NAMA that it continues to expect that it will meet its obligations by 2020. It would not be appropriate for me to comment on the specifics of the press reports of the loan sale referred to by the Deputy.

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