The 2009 Relationship Framework recognises the separation of Anglo Irish Bank from the Minister and limits intervention by the Minister in the conduct of Anglo Irish Bank's business to that necessary to protect the public interest. The Board is responsible for achieving the Business Plan and the Minister will play no role in day-to-day operational and commercial matters relating to its achievement, except to the extent he believes it is necessary to do so in order to realise the Objectives, in which case the Board shall comply with such instructions or policies as the Minister may issue.
The relationship Framework further provides that the bank shall obtain the prior consent of the Minister before appointing auditors or any third party financial or legal advisers where their appointment or work is, in the view of the Minister, material to this Relationship Framework, the realisation of the Objectives or the achievement of the Business Plan or the Legacy Plan (the "Advisers"). All work undertaken by such Advisers shall be consistent with the Objectives. The Board shall comply with any instructions given by the Minister in relation to the use by Anglo Irish Bank of Advisers.
In the case of the appointment of the Company referred to in the question the Minister's prior approval was not sought nor were his views on whether the appointment was material to the Relationship Framework sought. It was considered at the time by the bank that the appointment of the Company was "normal course business", of limited duration, the engagement did not constitute the appointment of financial or legal advisors and that the scope of the engagement was consistent with the Objectives and the requirements of the Restructuring plan. As indicated in the response to a previous Parliamentary Question my Department was aware of proposals to engage the Company from late October 2010.
As the Deputy will be aware the Relationship Framework has been revised in recent weeks to reflect the evolving role and relationship with IBRC having regard to the Restructuring Plan approved by the EU Commission. A copy of the revised Relationship is published on the Department's website http://banking.finance.gov.ie/wp-content/uploads/Irish-Bank-Resolution-Corporation1.pdf. Section 27 of the revised Relationship Framework addresses the issue of the appointment of advisors.
