Robert Troy (Longford-Westmeath, Fianna Fail)
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41. To ask the Minister for Finance in view of the unforeseen consequences that the liquidation of Irish Bank Resolution Corporation had on councils which held development bonds with the IBRC which are now worthless, if he will compensate these councils to enable them complete unfinished estates; and if he will make a statement on the matter. [46481/14]

Michael Noonan (Limerick City, Fine Gael)
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It is incorrect to state that these bonds are worthless. It is likely that any liabilities arising under bonds/guarantees/indemnities entered into by IBRC in favour of the various County Councils will rank as unsecured claims in the special liquidation. The Special Liquidators have confirmed that there is likely to be a  dividend for unsecured creditors of the liquidation. As such they have writte n to all unsecured creditors in the bank, including the local authorities, to invite them to submit a claim.

I am advised that the Department of the Environment, Community and Local Government are continuing to work with the relevant local authorities to ascertain the actual level of exposure that exists in relation to the development bonds previously entered into by IBRC in favour of the various County Councils or local authorities. Once that exposure is quantified the local authorities will submit a claim to the Special Liquidators in respect of the bonds.