Written Answers Nos. 151-167
151. Deputy Derek Nolan asked the Minister for Finance the number of income tax payers, total income and the total tax paid for each of the following income tax bands (details supplied) based on the most recent data available. [19815/13]
View answerI am advised by the Revenue Commissioners that the information requested, estimated by reference to the income tax year 2013, is set out in the following table.
All Income earners for Income Tax Year 2013 (provisional)
|
Gross Income Range |
Gross Income |
Numbers |
Income Tax |
|
- |
€ |
- |
€ |
|
10,000 or less |
1,755,195,609 |
398,719 |
540,090 |
|
10,001 - 20,000 |
5,895,802,270 |
389,465 |
44,906,140 |
|
20,001 - 30,000 |
9,692,254,203 |
390,703 |
377,082,408 |
|
30,001 - 40,000 |
10,501,433,477 |
301,794 |
784,745,538 |
|
40,001 - 50,000 |
9,264,605,134 |
207,607 |
1,056,443,011 |
|
50,001 - 60,000 |
7,489,784,983 |
137,112 |
1,065,178,081 |
|
60,001 - 70,000 |
6,069,997,777 |
93,814 |
964,256,465 |
|
70,001 - 80,000 |
5,023,284,049 |
67,291 |
880,587,675 |
|
80,001 - 90,000 |
3,896,300,054 |
46,011 |
746,685,867 |
|
90,001 - 100,000 |
3,047,644,522 |
32,179 |
625,051,505 |
|
100,001 - 125,000 |
5,141,434,649 |
46,373 |
1,144,579,074 |
|
125,001 - 150,000 |
2,932,353,868 |
21,560 |
709,882,238 |
|
150,001 - 175,000 |
1,887,309,423 |
11,693 |
482,850,837 |
|
175,001 - 200,000 |
1,319,322,948 |
7,067 |
344,777,138 |
|
200,001 - 250,000 |
1,761,361,118 |
7,916 |
465,729,094 |
|
250,001 - 300,000 |
1,176,277,209 |
4,318 |
321,393,242 |
|
300,001 - 350,000 |
824,724,704 |
2,559 |
230,802,907 |
|
350,001 - 400,000 |
614,087,160 |
1,646 |
172,546,121 |
|
400,001 - 450,000 |
488,301,196 |
1,153 |
139,361,918 |
|
450,001 - 500,000 |
383,577,556 |
809 |
110,763,705 |
|
500,001 - 750,000 |
1,254,419,004 |
2,093 |
365,120,684 |
|
750,001 - 1,000,000 |
635,230,509 |
744 |
187,424,208 |
|
1,000,001 - 2,000,000 |
871,692,345 |
664 |
240,549,322 |
|
Over 2,000,000 |
581,413,637 |
141 |
161,628,288 |
|
Total |
82,507,807,407 |
2,173,430 |
11,622,885,556 |
It should be noted that the income ranges shown in the above table relate to Gross Income as defined in Revenue Statistical Report 2011.
The figures are estimates from the Revenue tax-forecasting model using actual data for the year 2010 adjusted as necessary for income and employment trends in the interim. These are, therefore, provisional and likely to be revised.
It should also be noted that a married couple who has elected or has been deemed to have elected for joint assessment is counted as one tax unit.
152. Deputy Gerry Adams asked the Minister for Finance further to a meeting of the Committee of Public Accounts of 7 March 2013 (details supplied) if he will give details of the liquidation process of Irish Bank Resolution Corporation and the participation of NAMA in the process; if he will clarify whether it is the case that NAMA is required to bid at the independent valuers valuation of the loan book if nobody pays more or whether it is the case that NAMA will bid higher than the independent valuers valuation even if there are third party bids at the independent valuers price if it is felt that more value for the State can be attained through winding the assets down or running them off in a longer period; and if he will make a statement on the matter. [19866/13]
View answerAs was published by my Department in the Q&A document on the Promissory Note transaction on the 7th February last (http://www.finance.gov.ie/documents/publications/other/2013/qaupdate.pdf), third parties, including loan counterparties and other financial institutions, will be given the opportunity to bid for specific portfolios as part of an open and transparent sales process. If acceptable bids equal to or in excess of the independent valuation are not obtained, these portfolios will be sold to NAMA at the value determined by the independent valuation exercise until the IBRC debt to NAMA is repaid. NAMA will not offer a price in excess of this valuation in any case. This process will ensure that the long-term value of the assets is received and a fire sale of assets will not occur.
153. Deputy Gerry Adams asked the Minister for Finance further to a meeting of the Committee of Public Accounts of 7 March 2013 (details supplied) if he will confirm whether the NAMA input into the valuation methodology extends to who will be appointed as independent valuer; if he will confirm whether their input into the valuation methodology will relate to the value that NAMA sees in the assets by winding them down or running them off over a longer period; and if he will make a statement on the matter. [19867/13]
View answerThe Special Liquidators have responsibility for the appointment of independent valuers to value the assets of IBRC and NAMA have no input into that appointment process. For the purposes of this valuation, loan assets shall be valued using discounted cash flow analysis, taking into account the timing and reliability of cash flows, together with an appropriate discount factor to determine the value or, where appropriate, in accordance with other standard loan valuation methodologies. The specific loan valuation methodology to be applied will be agreed between the Special Liquidators and the independent professional valuer appointed subject to any instruction or directions that I may issue pursuant to the IBRC Act 2013. NAMA have been consulted by both my officials and the Special Liquidators in relation to this process but do not have a direct role in the development of the valuation methodology.
154. Deputy Gerry Adams asked the Minister for Finance further to a meeting of the Committee of Public Accounts of 7 March 2013 (details supplied) the way in which the pre-liquidation provisions based on December 2012 figures would just about break even and that the value would be about equal to the value of loans; and if he will make a statement on the matter. [19868/13]
View answerBased on the information available to the Department at the time of liquidation the best estimate was that the value of the remaining assets in IBRC would be about equal to the NAMA bonds issued to acquire the Facility Deed from the Central Bank. This should not be confused with the comments made by the former Chairman of IBRC which reflected the assumption that IBRC was to continue as originally planned which included the continued payments of interest and capital on the Promissory Notes which will not now be paid. It is far too early to predict the outcome of the valuation process, the comments made to the meeting of the Committee of Public Accounts on 7th March reflect the already heavily discounted nature of the loan book which had provisions of almost 40% as at the end of June 2012. It will not be possible to conclude for certain whether the value of the assets to be sold by the Special Liquidators is sufficient to compensate NAMA for the amount paid for the net IBRC debt that it has acquired until after the valuation of those assets has been concluded.
As part of the role of the liquidators, the assets of IBRC will be valued independently before being sold. Any assets not sold to third parties at or above the valuation price will be sold to NAMA at the independent valuation. This ensures a ‘floor’ price on the assets of IBRC and that where required, assets with limited sale potential now, can be worked through in the medium term by NAMA rather than sold to the best available third party at any price. This approach ensures a fire sale of assets will not occur. This Government’s approach is consistent and focused on the best outcome for the Irish State and its people.
155. Deputy Gerry Adams asked the Minister for Finance if he intends to lay before Dáil Éireann the total euro nominal differential between the valuation of the Irish Bank Resolution Corporation loans net of capital provisions in December 2012 and the total independent market valuation of the loans once completed by the appointed independent loan valuers of the liquidated IBRC. [19869/13]
View answerI have been advised by the Special Liquidators that they are not in a position to provide this confidential commercially sensitive information as this could potentially have a detrimental impact on asset recovery. I am further advised that in order to ensure that maximum value is obtained in the sales process the independent valuations will remain confidential. As explained in the Q&A document published by my Department on 7th February last if, after an independent valuation exercise, the value of the assets sold by the Special Liquidators is not sufficient to compensate NAMA for the amount it paid for the net IBRC debt owed to the Central Bank, I will be required to reimburse NAMA for the shortfall. The final valuation of these assets will not be known until that sale process is completed. I will make appropriate disclosure to the House at that time.
156. Deputy Gerry Adams asked the Minister for Finance if he has considered instructing the special liquidator of Irish Bank Resolution Corporation that the disposal of semi-State owned IBRC assets be managed under the same protocol that is in place for the sale of Bord Gáis Eireann’s energy business, ESB’s non-strategic power generation capacity, some assets of Coillte and the sale of the State’s remaining shareholding in Aer Lingus; if he has discussed with the Department of Public Expenditure and Reform the imposition of this protocol on the sale of IBRC assets which are nominally valued at more than three times the value of the total semi-State assets that are being sold under this semi-State sale process; and if he will make a statement on the matter. [19871/13]
View answerThe liquidation of IBRC is similar to any other liquidation with the exception that the Special Liquidators have been appointed by the Minister under the Irish Bank Resolution Corporation Act 2013 rather than appointed by the Courts. As such the Special Liquidators are obliged to follow normal Companies Acts priorities throughout the liquidation process and act in a manner that ensures the assets of IBRC are managed in a way which maximises the overall return for all its creditors including the State subject to the provisions of the IBRC Act. While the matter was not formally discussed with the Department of Public Expenditure and Reform, it was not considered appropriate for the same protocol which is in place for semi-State assets to apply to the disposal of the IBRC assets as the Special Liquidator will only be holding the assets for a short period of time, the sale of those assets is guided in a specified manner and the State is a creditor of IBRC in the context of the liquidation as opposed to an owner of the assets.
As the Deputy is aware, the Special Liquidators are in the process of devising and implementing a valuation and sales process in respect of the assets of IBRC. Any assets that are not sold to third parties for a value higher than the independent valuations will be sold to NAMA at that price. Assets that are transferred to NAMA will be subject to the protocol according to the NAMA Act 2009.
157. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No. 254 of 19 of February 2013, if he will provide further detail and greater clarification as to what he meant by a no gain-no loss basis on the transaction; if he will confirm that this statement in effect means that the liquidation of Irish Bank Resolution Corporation resulted in the European Central Bank finance lent by the Central Bank of Ireland to Bank of Ireland on foot of the Irish Government bond issued to IBRC becoming permanently retained in Bank of Ireland’s balance sheet and that the Central Bank of Ireland retained ownership of the then Bank of Ireland and pledged collateral; if he will confirm whether the finance that was provided from the Central Bank of Ireland to Bank of Ireland on the Government bond issued to IBRC and retained by Bank of Ireland as part of a repurchase agreement with IBRC was exceptional liquidity assistance or whether it was a finance provider under the ordinary open market operations of the ECB; if he will explain in granular detail the reason the IBRC liquidation caused the Central Bank of Ireland to retain ownership of collateral that at the time of the liquidation was not owned by IBRC; and if he will make a statement on the matter. [19872/13]
View answerAs the deputy is aware, there were two separate but related repurchase agreements in place at the time of IBRC’s liquidation concerning the 2025 Irish Government Bonds; one between IBRC and Bank of Ireland (“the IBRC repo”) and another between Bank of Ireland and the Central Bank of Ireland as part of normal Eurosystem refinancing operations. Under these repurchase agreements the 2025 Government Bonds were pledged as collateral by IBRC to Bank of Ireland (under the IBRC repo), and further by Bank of Ireland to the CBI (under the normal Eurosystem refinancing operations) in return for cash which was provided from the Eurosystem to Bank of Ireland and further from Bank of Ireland to IBRC (under the IBRC repo). As a result, at the time of the IBRC liquidation, the CBI held the 2025 Irish Government Bonds as collateral on behalf of the Eurosystem and IBRC held the cash proceeds of the repurchase agreement between it and BOI. The Bank of Ireland held neither bonds nor cash, but rather obligations for payment of cash and receipt of bonds with IBRC and offsetting obligations with the CBI. The liquidation of IBRC constituted an event of default under the IBRC repo with BOI. As a result, IBRC was obligated to repurchase the bonds from the Bank of Ireland at a repurchase price governed by the IBRC repo. As IBRC was unable to repurchase these bonds from Bank of Ireland with cash, Bank of Ireland retained the 2025 Irish Government Bonds in fulfilment of IBRC’s obligations under IBRC repo. In effect, the 2025 Irish Government Bonds, held as collateral by the Bank of Ireland under IBRC repo, were retained by Bank of Ireland in lieu of IBRC repurchasing these bonds with cash.
After the 2025 Government bond repo agreement between IBRC and Bank of Ireland terminated, the CBI purchased the bond. This bond was placed in the trading portfolio of the Central Bank, along with the bonds acquired in exchange for the Promissory Notes, and these bonds will be sold as soon as possible, provided conditions of financial stability permit.
To specifically respond to the points raised in your question, I am informed by the Bank of Ireland that, as a consequence of the termination of the IBRC repo and subsequent sale of the bonds to the CBI, the Bank of Ireland did not incur a gain or loss on these transactions.
In addition, the funding provided to Bank of Ireland by the Eurosystem through the repo with CBI was further provided by Bank of Ireland to IBRC under the IBRC repo. IBRC’s non-payment of that funding back to Bank of Ireland upon default on the IBRC repo did not result in financing being retained by Bank of Ireland, as this financing had been passed to IBRC under the IBRC repo and was not repaid to Bank of Ireland upon the termination of the IBRC repo.
Finally, the financing provided to Bank of Ireland by the Eurosystem under the repo through the CBI was provided under ordinary open market operations.
158. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No. 252 of 19 February 2013, if he will provide further updates as to the aggregate of the principal of the National Asset Management Agency bonds that shall be issued in consideration for the net debt owed by the Irish Bank Resolution Corporation to the Central Bank of Ireland; if he will explain the reason the National Asset Management Agency had not issued these securities during the week beginning 18 February 2013 as expected and detailed in his ministerial response; if he will confirm based on the way in which the Central Bank of Ireland manages its profits and given these NAMA bonds have euro system eligibility, the longer it takes for these NAMA bonds to be redeemed, the more profits the Central Bank of Ireland can make on the bonds on an annual basis and thus returned to the Irish Exchequer as long as the ECB open market rate remains lower than the interest on the NAMA bonds; and if he will make a statement on the matter. [19873/13]
View answerI am advised that in order to complete the sale to NAMA by the Central Bank of Ireland (“CBI”) of the net debt owed by the Irish Bank resolution Corporation to the CBI (“amount outstanding under the Facility Deed”) a number of steps had to be completed which involved each of the three parties impacted by the transaction, the CBI, NAMA and the Special Liquidator. To establish the final amount outstanding under the Facility Deed, the credits and obligations arising from all other financing transactions and operational relationships between IBRC and the Central Bank were identified and set off against the amount outstanding under the Facility Deed. Once this process was complete, the Central Bank, NAMA and the Special Liquidators then agreed the final amount outstanding under the Facility Deed prior to the completion of its sale by the Central Bank to NAMA.
On 28 March 2013, NAMA issued €12.928bn of Government Guaranteed Senior Bonds to the CBI in settlement of the purchase of the facility deed. I wish to advise the Deputy that further information regarding these bonds can be found at http://www.nama.ie/about-our-work/how-we-fund-our-work
The way in which the Central Bank of Ireland will manage these bonds is a matter for the Central Bank. They advise that they do not comment on individual investment holdings, as NAMA bonds are managed together with the Bank’s other investment assets, any positive investment return at year end will be the product of the Bank’s investment portfolio in aggregate and not individual investments in isolation.
159. Deputy Gerry Adams asked the Minister for Finance if he will confirm that notwithstanding the additional contingent debt liability to the State from the existence of outstanding the National Asset Management Agency bonds that shall be held by the Central Bank of Ireland as consideration for NAMA’s acquisition for the net debt owed by the Irish Bank Resolution Corporation to the Central Bank of Ireland, there is a clear economic incentive for the Irish Exchequer not to sell the IBRC assets now whose proceeds will redeem those bonds, but rather to retain the assets in NAMA and allow the Central Bank of Ireland to continue to make an annual sizeable profit on the issued NAMA bonds which can be returned to the Exchequer and help to reduce the annual deficit or contribute to capital investment job creation schemes; if he has calculated the annual profit the Central Bank of Ireland could accrue from the retention of the NAMA bonds issued to it as consideration for the IBRC debt on an annual basis if no IBRC assets were sold and all the IBRC assets transferred to NAMA; if he will provide an estimate of this figure on the expected NAMA bond interest rate and the ECB open market rate remaining at 0.75% for the next two years; and if he will make a statement on the matter. [19874/13]
View answerAs owner of the NAMA Bonds in question this is a matter for the Central Bank of Ireland. The Central Bank of Ireland advises that they do not comment on individual investment holdings, as NAMA bonds are managed together with the Bank’s other investment assets, any positive investment return at year end will be the product of the Bank’s investment portfolio in aggregate and not individual investments in isolation.
As regards NAMA’s management of any assets it acquires from IBRC, NAMA is obliged under Section 10 of the NAMA Act to obtain the best achievable financial return to the State on the assets acquired by it and, in that context, the profitability of the Central Bank of Irelands is not a relevant consideration.
160. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No. 239 of 19 February 2013, if he will confirm that at the time of the Irish Bank Resolution Corporation liquidation there was a total of €136 million, £17.92 million sterling and $100 million Hong Kong dollar denominated senior unguaranteed unsecured Anglo Irish Bank debt outstanding; if he will confirm that at the time of the IBRC liquidation there was a total of $200 million US dollar denominated Anglo Irish Bank subordinated debt outstanding; if he will confirm that all of this outstanding debt detailed in this question and the relevant holders of the individual securities issued to the total nominal amounts detailed are ranked as unsecured creditors and their payment will not be honoured through any other means than that of unsecured creditors in the preferential chain; and if he will make a statement on the matter. [19875/13]
View answerI have been advised by IBRC (in special liquidation) that the following debt was outstanding at the time of the IBRC liquidation: €101 million euro denominated senior unguaranteed debt; BGN 25 million euro denominated senior unguaranteed debt; $100m Hong Kong dollar denominated senior unguaranteed unsecured debt; $200m US dollar denominated subordinated debt; €118 million floating rate subordinated notes; and GBP £300 million Preference Share held by the Minister of Finance.
As unguaranteed liabilities the holders of these instruments rank as unsecured creditors in the liquidation and the normal Companies Acts’ priorities will apply.
The proceeds from the disposal of IBRC’s assets will be used to repay creditors in accordance with normal Companies Acts priorities, and consequently preferred creditors will be paid first and then the debt which NAMA will have purchased from the Central Bank will be paid. If there are proceeds available after repayment in full of the NAMA debt, these proceeds will be applied to the remaining unsecured creditors.
161. Deputy Gerry Adams asked the Minister for Finance if carbon taxes will be imposed to Irish produced firelogs but not to imported firelogs. [19876/13]
View answerSolid fuel carbon tax will be charged on all solid fuels supplied in the State, regardless of whether the fuel products are Irish made or imported. Solid fuel is defined under section 77 of the Finance Act 2010, as amended and means coal or peat. Coal is further defined to include coal and lignite, solid fuel manufactured from coal and lignite, and any other energy product within the meaning of Article 2.1 of Council Directive 2003/96/EC of 27 October 2003 in solid form. Peat means peat falling within CN Code 2703 of the Combined Nomenclature of the European Communities referred to in Article 1 of Council Regulation (EEC) No. 2658/87 of 23 July 1987, as amended by Commission Regulation (EC) No. 2031/2001 of 6 August 2001 and includes any solid fuel manufactured from peat.
Fire logs or other ignition products that contain ingredients that fall within the definitions of coal or peat will be liable to the tax.
162. Deputy Thomas P. Broughan asked the Minister for Finance the timetable for enacting all sections of the Credit Union Act 2013; if he intends to enact the remaining sections of the Act in phases; the reason there has been a delay in commencing all sections of the Act; and if he will make a statement on the matter. [19879/13]
View answerThe Credit Union and Co-operation with Overseas Regulators Act 2012 was signed into law by the President in December 2012. The Parts of the legislation in relation to Restructuring and Stabilisation have already been commenced. The commencement of the remaining Parts of the Act will be aligned with the introduction of the underpinning Central Bank regulations, with a view to implementation in a coherent and cohesive manner. The Central Bank is currently developing a prudential rulebook or handbook which will provide clarity to credit unions on how the new regime is to operate. A consultation protocol for credit unions was developed in 2012 in line with recommendations in the Report of the Commission on Credit Unions. This protocol sets out that prior to the introduction of new regulations the Central Bank will consult with credit union representative bodies and undertake a Regulatory Impact Analysis to ensure a clear, open and transparent engagement with stakeholders in implementing new regulations. This protocol will also facilitate a tiered approach to regulation which will have regard to the nature, scale and complexity or to the class or classes of credit union to whom the regulations will apply.
The Deputy may wish to note that the Registrar of credit unions, in her speech to the Irish League of Credit Unions at their AGM on Saturday last, gave details of a planned series of information seminars which will form part of this consultation phase. These seminars will serve to provide a forum for engagement between the Regulator and credit union stakeholders on matters such as the new Fitness and Probity regime and the new credit union handbook, prior to their introduction.
163. Deputy Thomas P. Broughan asked the Minister for Finance his plans to publicly advertise the upcoming board vacancies on the Financial Services Ombudsman Council and invite expressions of interest; and if he will make a statement on the matter. [19880/13]
View answerSection 57BC of the Central Bank and Financial Services Authority Act 2004 provides for the establishment of the Financial Services Ombudsman Council. The current term of the Financial Services Ombudsman Council’s members will expire on 28 October 2013. In line with Government Decision S180/20/10/1424, I will invite expressions of interests in advance for any vacancies for members of the Financial Services Ombudsman Council. These will be advertised in advance on the Department of Finance website.
Expressions of interest from persons with the relevant qualifications will be considered, and any appointments will not necessarily be confined to those who make expressions of interest.
The Financial Services Ombudsman Council will consist of no fewer than 5 members nor more than 10 members, as I decide. The Council members will be appointed following consultation with the Minister for Enterprise Trade and Employment.
164. Deputy Seán Kenny asked the Minister for Finance if he will request the Revenue Commissioners to set up a dedicated email address for members of the public to e-mail Revenue regarding queries about the local property tax; if the Revenue Commissioners will be instructed to answer all email queries within a reasonable timeframe; and if he will make a statement on the matter. [19926/13]
View answerI am advised by Revenue that customers can email Local Property Tax (LPT) queries to a dedicated email address at: lpt@revenue.ie. This email address is published on the Revenue website www.revenue.ie. Individuals with queries on submission of the 2013 LPT return are advised to use the telephone helpline on 1890 200 255. Revenue strives to respond to all correspondence including email as quickly as possible and that, in general all queries are answered within normal Revenue customer service standards i.e. 30 days. However, in circumstances where Revenue experiences extremely high volumes of correspondence, priority will be given to the more important issues impacting on the ability of customers to meet their obligations, and as a consequence there may be exceptional instances where some queries are answered outside of the normal standards.
The Deputy will appreciate that the introduction of the LPT, amounting as it does to the largest extension of the self-assessment system in the history of the State, represents a very great administrative challenge for Revenue. As a new service that will have exceptional temporary pressures at particular stages of its initial implementation it is difficult for Revenue to predict the level of contact that can arise during its introduction and, consequently, the resources required to meet customer service demands.
165. Deputy Andrew Doyle asked the Minister for Finance if the Secretary General of his Department, for the purpose of transparency and accountability, will publish their diary on their website on a monthly basis. [19964/13]
View answerAs Minister for Finance, I am very conscious of the importance of effectively communicating information about the Department’s activities and of improving levels of transparency and accountability. Transparency is one of the guiding principles as set out in our revised Statement of Strategy. With this in mind, the Department has already published the Secretary General’s diary on a monthly basis from March 2012 and we intend to continue with this initiative. Details of the diary are available on the Department’s website. The Department also recognises the need for a strong governance framework in order to support and monitor our performance objectives. During 2012, a number of changes to the governance structures was introduced which I continue to review and improve.
For example, the Department modernised the Management Advisory Committee (MAC) process with one in-depth monthly management meeting and three shorter focused meetings on the week’s events. In addition, four new subcommittees of the MAC were established. The Risk, Policy, Transformation and People and Culture subcommittee meetings allow for great in-depth analysis than could occur during MAC meetings. These are chaired by senior MAC members and report to the MAC and all provide a greater level of internal challenge and debate in relation to the Department’s policies.
166. Deputy Pearse Doherty asked the Minister for Finance further to Parliamentary Question No. 252 of 16 April 2013, if he will confirm the name or names of the principal person or persons at the Central Bank of Ireland responsible for setting and monitoring targets at the banks for dealing with distressed mortgages. [20016/13]
View answerI am informed by the Central Bank that setting and monitoring targets in this area is the responsibility of the Deputy Governor (Financial Regulation) of the Bank who will delegate operational responsibility to the Director, Credit Institutions & Insurance Supervision and the Divisional Supervisory teams.
167. Deputy Pearse Doherty asked the Minister for Finance if he will provide an explanation for the €284,000 of ex gratia payments paid to former directors and-or dependants referred to on page 127 of the 2012 annual report and accounts of Bank of Ireland, a bank in which he controls 15% of the ordinary shares and €1.5 billion of preference shares. [20017/13]
View answerI have received the following response from Bank of Ireland: “Many years ago, certain non-executive directors received pensions from the Group. The amount shown in the 2012 Group accounts relates to the pension payments to the small residual number (10) of beneficiaries of such arrangements. The majority of the beneficiaries are in their late 80’s or early 90’s. Payments were only made in respect of part of the year for two of the beneficiaries who died during 2012. Since year-end, we have been informed of the deaths of two more of the beneficiaries. The payments will therefore be further reduced in the 2013 accounts and will continue to reduce in following years. It has been many years since new pension arrangements were put in place for non-executive directors”.
