Charlie McConalogue (Donegal, Fianna Fail)
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120. To ask the Minister for Finance further to Parliamentary Question No. 131 of 17 November 2017, if his department has received legal clarification with regard to the issue (details supplied); and if he will make a statement on the matter. [52614/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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In replying to this question, I am making the assumption that the Deputy is referring to Parliamentary question number 131 of 17 October 2017 which asks why the Government has not agreed to cover 100% of Setanta third party compensation claims; if this means former customers are now potentially liable for partial cost of claims; and if the Minister for Finance will reconsider his approach on this issue.

In my reply, I indicated that there is a legal concern that any Government intervention to fully compensate third party claimants, and then “step into the shoes” of these claimants to recover directly any balance due from the Setanta liquidation could result in the Government having a lower status in the creditor hierarchy, and thus significantly reduce the amount it could recoup from the liquidator.

At the time I answered the PQ, I was awaiting legal advice on this matter from a Maltese law firm. My Department has recently received this advice, and after reviewing it have forwarded it to the office of the Attorney General for its consideration.

On receipt of a reply from the Attorney General's Office, I will be in a better position to further consider this matter.