Gerry Adams (Louth, Sinn Fein)
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Question 179: To ask the Minister for Finance if he intends to proceed with plans to move tracker mortgages from State owned banks such as Permanent TSB and Allied Irish Bank to Irish Bank Resolution Corporation. [23915/12]

Gerry Adams (Louth, Sinn Fein)
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Question 181: To ask the Minister for Finance his plans for further restructuring of the State owned banking sector. [23917/12]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 179 and 181 together.

As the Deputy can appreciate, officials from the Irish Authorities are in constant on-going dialogue, with all of the covered institutions with a view to considering and implementing structures and solutions which would seek to advance the overall financial system. As and when further measures are agreed/solutions emerge I will inform the Houses as appropriate.

As part of this process the Government has specifically committed to a number of issues including:

· A review of the arrangements that were put in place to capitalise IBRC - formerly Anglo Irish Bank and Irish Nationwide.

· Submission of a Restructuring plan for Irish Life and Permanent to the European Commission by end June 2012

The purpose of the review of the Promissory Notes is to determine if there was a way to reduce the overall cost to the State. Part of the capitalisation of IBRC was provided using promissory notes as consideration.

While the development in relation to the end March Promissory Note payment is positive, we must continue to work towards the greater benefits which would derive from the re-engineering of the promissory note. There are potential improvements for the banking sector which could also stem from the ongoing technical discussions.

It is for these reasons that we must look at the recent developments as an initial step in a process. This is a medium term project. The Government is focused on developing an alternative solution to the promissory note arrangement in IBRC. It is too early at this stage of the process and indeed it would be inappropriate to predetermine what a successful outcome will look like or to indicate how the various stakeholders have or may react to various proposals. The Government's aim is to arrive at a successful conclusion that is in the interests of Ireland and the EU.