Michael McGrath (Cork South Central, Fianna Fail)
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108. To ask the Minister for Finance when the European Commission will deliver its final response and decision in respect of the restructuring proposals for Permanent TSB; the way the delay is impacting the day-to-day management of the bank; and if he will make a statement on the matter. [49276/14]

Michael Noonan (Limerick City, Fine Gael)
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A way forward for Permanent TSB was agreed with the Troika in April 2012 which envisaged it playing an important role in the future of Irish retail banking, being a more focused retail bank bringing competition to the marketplace which has consolidated significantly since 2008. In this regard Permanent TSB prepared a Restructuring Plan, which was submitted to the European Commission ("the Commission") in June 2012. As requested by the Commission, an updated version of the plan was submitted in August 2013 which incorporated improvements in performance over the intervening period.

The Permanent TSB restructuring plan submitted in Autumn 2013 is now outdated and is in the process of being updated for both recent positive financial and operational performance in 2014 and the results of the Comprehensive Assessment. My officials have been in discussions with the European Commission over recent weeks in relation to the plan, details of which are confidential between the parties and commercially sensitive.  I do not intend to speculate on when that process might be concluded.

As the Deputy is aware PTSB is an important bank in a highly concentrated Irish market. While no restructuring plan has been approved, it has not prevented Permanent TSB from making significant progress in delivering key elements of the Restructuring Plan submitted over the last year and the business is being managed structurally in the way envisaged in the plan. Permanent TSB has made steady progress on returning to operating profitability, has significantly de-risked its balance sheet through a sale of a tranche of its UK mortgage portfolio and the sale of Springboard Mortgages and has reduced 90 day plus mortgage arrears by 25% from peak and 23% year-to-date September.

The current strategy is for Permanent TSB to be an independent bank, competing within targeted segments of the retail banking market, and I will continue to support the board and management in the delivery of that strategy.