Michael McGrath (Cork South Central, Fianna Fail)
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135. To ask the Minister for Finance the position regarding the transfer of Newbridge Credit Union to Permanent TSB; if Permanent TSB has made a claim in respect of the indemnity granted to it; if there are outstanding issues to be resolved; and if he will make a statement on the matter. [49308/14]

Michael Noonan (Limerick City, Fine Gael)
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I agreed to the Governor of the Central Bank's request for the payment of a financial incentive of up to €53.9 million to transfer the assets and liabilities - excluding the premises, of Newbridge Credit Union Limited to permanent tsb (ptsb). All assets and liabilities of Newbridge Credit Union Limited - excluding the premises - were transferred to ptsb pursuant to a High Court order dated 10 November 2013.

The financial incentives agreement between the Central Bank and ptsb, required the payment of €23 million to ptsb in cash at transfer. The financial incentives agreement also contains provisions for the Credit Institutions Resolution Fund to cover up to €4.25 million in restructuring and integration costs incurred by ptsb as part of the transaction; up to €2 million in guarantees in respect of transferring liabilities; and up to €24.7 million in Loss Compensation payments in respect of losses on the loan book.

I have been informed by the Central Bank that, to date, the Central Bank has paid €0.8 million to PTSB in respect of restructuring cost claims, and €0.3 million to PTSB in respect of transferring liabilities claims.

Separately, Jim Luby of McStay Luby was appointed as liquidator of Newbridge Credit Union Limited (in liquidation) by the High Court on 16 December 2013. The liquidation process in relation to NCU is on-going. A licence has been granted to ptsb by the liquidator to operate from the NCU premises. The liquidator has now signed contracts with the Office of Public Works to purchase NCU's former premises, with the sale expected to complete in Q1 2015.

The sale proceeds generated (net of expenses) will be paid by NCU into the Credit Institutions Resolution Fund in due course, in accordance with Section 46(6) of the Central Bank and Credit Institutions (Resolution) Act 2011. Under that Act, the Credit Institutions Resolution Fund is the principal creditor of NCU in the amount of the financial incentive paid or payable to ptsb.

Michael McGrath (Cork South Central, Fianna Fail)
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136. To ask the Minister for Finance the amount of fees charged to date by the special managers appointed to credit unions; and if he will make a statement on the matter. [49309/14]

Michael Noonan (Limerick City, Fine Gael)
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I have been informed by the Central Bank that the only Special Manager appointment to a credit union to date was the appointment of Luke Charlton of Ernst & Young to act as Special Manager for Newbridge Credit Union Limited.

From 13 January 2012 to 26 April 2013 a total of €1,252,142 in Special Manager fees was approved by the High Court. At an early point the hourly rate of fee payable to the Special Manager was reduced from €423 to €375, following an application by the Central Bank to the High Court on 10 February 2012, with a corresponding reduction in fees payable to his staff.

The Special Manager had not been paid any fees between 26 April 2013 and the point of transfer to ptsb on 11 November 2013. The transfer order included a Special Manger fee accrual liability for ptsb, and ptsb later discharged it. The amount invoiced for that period was €502,638, bringing the total amount paid to the Special Manager in respect of his tenure to €1,754,780.