Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

114. To ask the Minister for Finance when the guaranteed liabilities under the ELG scheme are due to mature for each of the covered institutions; the way in which his powers to appoint public interest directors will be affected in each case; and if he will make a statement on the matter. [47774/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The 'Eligible Liabilities Guarantee' (ELG) Scheme will expire by the end of March 2018; eligible liabilities are now at a substantially reduced level and all are expected to mature before this date. The level of Eligible Liabilities for each institution are detailed in their Annual Financial Reports.

The rights for the State to appoint Public Interest Directors to the boards of the Covered Institutions were derived from the terms of the original Credit Institutions (Financial Support) Scheme (CIFS) introduced in 2008 and extend over the period of the guarantee. The scheme with its associated rights, pre-dated the State's acquisition of equity in the banks and given that the last of the guaranteed liabilities will mature between now and next spring, I do not expect to make any new appointments of Public Interest Directors to the boards of the banks. 

However, the State has the ability to appoint directors to the banks in which it still has large equity ownership positions. Indeed my officials are working on a new procedure for any future appointments to bank boards, that will address the commitment in the Programme for Partnership Government to,  “Cease to appoint new Public Interest Directors to the banks, and reform the procedures for the appointment of bank directors by the State, with a view to increasing transparency in the process".

Any new appointment procedure will need to have due regard for the distinct differences relative to appointments to other State boards such as the requirements of the Central Bank/SSM Fitness and Probity Regime and the requirement to have a broad set of expertise relevant to large regulated entities in an ever more complex regulatory environment.