Dáil Éireann Debate, Thursday - 16 January 2014
49. Deputy Terence Flanagan asked the Minister for Finance if he will provide a breakdown of the third party costs involved in a merger (details supplied); and if he will make a statement on the matter. [1822/14]
View answerI have been informed by the Central Bank that in order to facilitate Naas Credit Union’s consideration of a proposed merger with Newbridge Credit Union, the Central Bank agreed to cover the transaction adviser costs incurred by Naas Credit Union on a capped basis.
On 22 November 2013, the Central Bank paid €750,422 to cover the cost of transaction advisers incurred by Naas Credit Union in relation to the proposed merger. The €750,422 costs are split as follows:
- €224,993 for legal advisers
- €288,264 for accounting and financial advisers
- €237,165 for other advisers (comprising Property, Public Relations, Project Management, IT, HR and Business Consultants).
These costs were agreed by the Central Bank and paid for from the Central Bank’s own resources. These costs were not chargeable to the Credit Union Resolution Fund and there will not be scope for recoupment through levies by the Central Bank.
Naas Credit Union requested payment for a further €25,341 in adviser costs on 8 January 2014 (legal advisers €19,452 and other advisers €5,889) within the permitted cap. The Central Bank is currently reviewing whether or not these costs are in line with the cost recovery arrangements.
