Written answers

Tuesday, 7 May 2013

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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135. To ask the Minister for Finance the total actual and potential claims by local authorities against Irish bank Resolution Corporation in respect of unpaid developer bonds relating to building developments; and if he will confirm the way such liabilities will rank amongst IBRC's creditors. [21181/13]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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I am advised that development bonds previously entered into by IBRC in favour of the various County Councils or local authorities remain in place. However it should be noted that it is likely that any liabilities arising under these arrangements, if called upon, will rank as unsecured claims in the special liquidation. It must be stressed that these bonds are contingent liabilities and will only be called upon where developers breach planning conditions and are not in a position to meet any liability that arises as a result. Any local authority should contact the Special Liquidators directly in respect of such claims should they arise. The Special Liquidators are in the process of establishing the level of bond/guarantees and indemnities entered into by IBRC (prior to liquidation) in favour of County Councils.


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