Catherine Murphy (Kildare North, Independent)
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75. To ask the Minister for Finance further to Parliamentary Question No. 30 of 4 February 2015, the reason he stated in his reply that the sale of an entity by Irish Bank Resolution Corporation prior to its liquidation (details supplied), which resulted in a net loss to IBRC of approximately €105 million, did not meet the financial thresholds which trigger mandatory consultation with the State under Paragraph 4 of the operational protocol for the relationship framework which governed interactions between himself as Minister and IBRC, even though those thresholds clearly state that any adverse impact on the total capital of IBRC of €100 million or more should do so; if he will account for the reason no such consultation took place in this instance; if he received any representations regarding this sale from any of the parties involved; if so, if he will provide the dates and names of parties concerned; and if he will make a statement on the matter. [9582/15]

Michael Noonan (Limerick City, Fine Gael)
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The Relationship Framework and Operational Protocol dated 29th March 2012 between the Minister for Finance and Irish Bank Resolution Corporation (IBRC), referred to in my answer to Parliamentary Question No. 30 of 4th February 2015, came into effect after the sale of the company referred to in the question.  

A previous Relationship Framework dated 8th July 2009 was in effect at the time the Board of IBRC approved the sale of the company referred to in the question on 15th March 2012. 

Under this previous Relationship Framework, the Board were required to engage with the Minister for Finance on certain key issues which included "Any material acquisitions, disposals, investments, realisations or other transactions, other than in the ordinary course of Anglo Irish Bank's banking business."

It should be noted that this previous Relationship Framework did not include any specific monetary thresholds which would trigger mandatory consultation with the Minister for Finance. It should also be noted, that at that time, the ordinary course of the Bank's business was to conduct an orderly run-down and ultimate liquidation of the Bank. As such, IBRC's efforts, as a secured lender, to maximise the recovery on its loans to the company referred to in the question was considered to be in the ordinary course of business. For that reason, and under the Relationship Framework in place at that time, IBRC were not required to consult with the Minister for Finance on this matter in advance of making a decision.

It should be noted that the Relationship Framework and Operational Protocol put in place on 29th March 2012 contained specific financial thresholds which would, from that date on, trigger mandatory consultation with the Minister for Finance for qualifying transactions.