Dáil Éireann Debate, Wednesday - 20 November 2013
31. Deputy Richard Boyd Barrett asked the Minister for Finance if he has drawn to the EU's attention, the fact confirmed in EUROSTAT figures, that the average cost per Irish citizen of the European bank bailout was €8,981 whereas the average cost per EU citizen was €192; and if he will make a statement on the matter. [49252/13]
View answerThe enormous cost being borne by the Irish taxpayer as a result of the recapitalisation of the Irish banking system is a topic that this Government continues to raise at a European level on a regular basis. The successful restructuring of the Promissory Notes in February of this year is evidence of progress in this regard. The Government continues to work constructively with our European partners in respect of these issues and we will continue to participate in the development of the ESM and the structuring of the Single Supervisory Mechanism to ensure that Ireland will benefit, on similar terms to other member states, from developments in this regard. As the Deputy will be aware, before this government entered office, taxpayers’ money amounting to €46.3bn was injected into the banks, in the form of capital support, most of which went into the former Anglo Irish Bank. Subsequent to the formation of the current government the banks were required to raise a total of €24bn as a result of the Central Bank’s 2011 Prudential Capital Assessment Review (PCAR). However, primarily as a result of successful private equity contributions, asset sales and burden sharing with bondholders, the Government only had to inject €16.5bn into the relevant institutions. In all the State’s Total Capital Investment in the Banks amounted to €64.1bn at its peak. This figure represents the gross capital or money committed to recapitalising these institutions and does not take account of revenues received directly or indirectly from the banks in return for State support, or indeed from disposals.
The State has now started the process of exiting its bank investments and should the opportunity arise to sell any further investments, this will be considered having assessed the best interests of the State. These disposals assist in reducing the ultimate cost of the recapitalisations for the taxpayer.
