Tuesday, 5 March 2013

Questions (173)

Michael McGrath

Question:

173. Deputy Michael McGrath asked the Minister for Finance the number and total value of builder/developer bonds held by local authorities which are in Irish Bank Resolution Corporation, in special liquidation; and if he will make a statement on the matter. [11487/13]

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Written answers (Question to Finance)

I am advised development bonds that were previously entered into by IBRC in favour of the various county councils or local authorities remain in place. However it should be noted that it is likely that any liabilities arising under these arrangements, if called upon, will rank as unsecured claims in the special liquidation. It must be stressed that these bonds are contingent liabilities and will only be called upon where developers breach planning conditions and are not in a position to meet any liability that arises as a result. Any local authority should contact the Special Liquidators directly in respect of such claims should they arise. Due to customer/client confidentiality and sensitivities the Special Liquidators have indicated that they not in a position to provide details of builder/developer bonds held by local authorities in IBRC (in Special Liquidation).