Michael McGrath (Cork South Central, Fianna Fail)
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58. To ask the Minister for Finance if he will provide a breakdown of the way the Mercer report savings are being achieved for each of the Irish headquartered banks; and if he will make a statement on the matter. [54545/13]

Michael Noonan (Limerick City, Fine Gael)
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As I stated in earlier replies to Parliamentary Questions on this matter I can confirm that the three State supported banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested by the Government in response to the Mercer Report. I was not prescriptive in how this was to be achieved respecting their differing State ownership and investment and paths to profitability. I have reviewed the letters submitted and in light of the various industrial relations developments since then I now am satisfied that the banks will deliver remuneration cost savings of 6% to 10%. The Bank of Ireland proposal focused on changes to the defined benefit pension scheme that will affect all staff who are members of this scheme and as the deputy will be aware an agreement has now been reached with the IBOA in this regard. The AIB proposal included the closure of the defined benefit scheme to future accrual along with other changes including an increase in working hours which were agreed with the IBOA in July. The PTSB proposal centred on the wind-up of the defined benefit pension scheme for all staff who were members of this scheme and this has now been completed.

For clarity senior management in the banks have made the following contributions; in the case of Bank of Ireland the proposed pension changes affect all staff in the BSPF scheme including the Chief Executive. In the case of AIB reductions in pay and benefits of higher earners ranging from 7.5% to 15% were implemented in the second half of 2012 and it also should be noted that the members of the AIB Leadership Team all joined the bank since 2008 and receive reduced pension contributions from their predecessors. In the case of PTSB all senior management joined the bank since 2008 and are on lower remuneration levels than their predecessors.

Michael McGrath (Cork South Central, Fianna Fail)
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59. To ask the Minister for Finance his plans to put a protocol in place for the operation of rent receivers appointed to residential properties; and if he will make a statement on the matter. [54546/13]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the covered institutions have appointed a number of rent receivers and fixed rent receivers. I have informed the Deputy recently that under the Relationship Frameworks that govern the relationship between the Minister for Finance and the State supported banks’, the bank’s Board and Management team retain responsibility and authority for determining the banks’ strategies and commercial policies and conducting their day-to-day operations. The appointment of rent receivers to properties is a day-to-day operational decision for the Boards and Management teams of the covered institutions. I have been advised by the Central Bank of Ireland that it has no plans to put a protocol in place for the operation of rent receivers at this time.

The Deputy may wish to note that the Residential Tenancies Act 2004, which falls within the responsibility of the Department of the Environment, Community and Local Government, provides the main regulatory framework for the private rented residential sector and for the operation of the Private Residential Tenancies Board. The Act provides for security of tenure and specifies minimum obligations for landlords and tenants under a tenancy. In addition, the Act contains provisions relating to the setting of rent and rent reviews and sets out the procedures and notice periods that must be complied with when terminating a tenancy.

In circumstances where a receiver is appointed in respect of a rented dwelling, it is important that the rights of tenants under both tenancy agreements and the Residential Tenancies Act are protected. While the circumstances of each case may vary depending on how a receiver is appointed, the statutory or contractual rights of tenants should not be compromised.

My colleague, the Minister of State for Housing and Planning, Minister Jan O'Sullivan T.D., has informed me that arising out of her concerns on this issue, she met with the Irish Banking Federation in relation to the provision of guidance in regard to receivers and their responsibilities towards tenants. As a result of that meeting the IBF has published a guide to receivership for residential tenants.

I am also informed by Minister O'Sullivan that she is also examining whether amendments to the Residential Tenancies Act, in the context of the Residential Tenancies (Amendment) (No. 2) Bill 2012, could help to bring greater clarity in this area that would be of benefit to tenants and indeed to receivers in how they fulfil their functions. The Bill was passed by the Dáil and is currently before the Seanad.

Michael McGrath (Cork South Central, Fianna Fail)
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60. To ask the Minister for Finance if his Department has had any contact with the Irish Headquartered banks on the issue of confidentiality agreements that certain bank customers are required to sign before they will receive a deal on their mortgage arrears issue; and if he will make a statement on the matter. [54547/13]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by AIB that customers may be required to sign a confidentiality agreement as part of AIB’s normal commercial activities. AIB has stated that its correspondence/interactions with customers are confidential and all customers are encouraged in advance of signing any new documentation to get their own independent advice prior to signing. However AIB informs me that it does not currently request sole mortgage arrears customers, i.e. those that do not have other commercial or investment debt, to sign confidentiality agreements. Bank of Ireland has informed me that in certain cases it will require a customer to sign a confidentiality agreement prior to entering into discussions in relation to the formulation of an alternative arrangement/restructuring. Bank of Ireland has informed me that the reason for this is that it treats customers on an individual case by case basis and, especially in cases of particular sensitivity, it wishes to ensure that the subject matter of the arrangement is confidential between the bank and the customer.

Permanent TSB has informed me that it is not standard or usual for it to request its customers to sign non-disclosure agreements in respect of restructurings. Permanent TSB informs me that requests for same are rare and made only on an exceptional basis.