Dáil Éireann Debate, Wednesday - 6 March 2013
79. Deputy Catherine Murphy asked the Minister for Finance if he has or intends to carry out an audit on local authorities to determine an estimate of losses of works insured under Irish Bank Resolution Corporation bonds; and if he will make a statement on the matter. [11848/13]
View answerI am advised that 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. I, as Minister for Finance, have no responsibility in relation to the auditing of local authorities.
