Written Answers Nos. 92-102
92. Deputy Michael McGrath asked the Minister for Finance the sale price for National Asset Management Agency Project Arrow loans; the discount on the original face value of the loans; the discount on the carrying value of the loans on the agency's books; and if he will make a statement on the matter. [38773/15]
View answer106. Deputy Michael McGrath asked the Minister for Finance if he is satisfied that the National Asset Management Agency's Project Arrow is to be completed while investigations are ongoing into Project Eagle, which may potentially have implications for Project Arrow; and if he will make a statement on the matter. [38792/15]
View answerI propose to take Questions Nos. 92 and 106 together.
I am advised by NAMA that a preferred bidder has been selected, Promontoria Holding 176 B.V., an affiliate of Cerberus Global Investors (Cerberus), for Project Arrow.
The sales price is a matter for the parties to the sale and as I have previously stated, as Minister for Finance I do not have a role in individual NAMA sales and I do not comment on the commercial details of such sales.
All sales are a matter for the NAMA Board in line with its statutory independent commercial mandate to maximise the return to Irish taxpayers from the management and sale of loans and the property and other assets securing those loans.
In respect of Project Eagle, investigations are ongoing in other jurisdictions and this is appropriate given allegations against certain individuals on the periphery of the buyer side of this transaction. However, as has now been outlined numerous times, there has been no allegation of wrongdoing against NAMA nor, to my knowledge, against Cerberus regarding their role in the Northern Ireland Loan Sale process.
If the Deputy is suggesting wrongdoing on behalf of Cerberus in relation to the purchase of the Project Eagle portfolio, I would strongly encourage him to provide the relevant authorities with whatever evidence he has in his possession. If the Deputy has no such evidence, I question his basis for this line of enquiry into the Project Arrow sale.
I reiterate that I am not aware of any investigations in any jurisdictions into NAMA in respect of the Project Eagle sale.
The Deputy will also be aware that Cerberus previously provided confirmation that it acted within all applicable laws within all jurisdictions relevant to this sale and that no fee was paid to any party connected with NAMA. Cerberus also has outlined its understanding that any investigations that are ongoing relate to third parties not affiliated to Cerberus. Furthermore, the NAMA Chair has confirmed at the recent PAC appearance on 1 October 2015, that the investigations are not focused on the conduct of NAMA.
Given this, there is absolutely no basis for intervening in the sale of Project Arrow which has been conducted by NAMA in line with the highest international standards and which will generate the best available return to the Irish taxpayer.
NAMA has put huge effort into preparing for, bringing to market and completing loan and asset sales processes, which include some of the largest portfolios to come to market in Europe. These sales significantly contribute to NAMA's debt redemption targets and its obligation to achieve maximum return to the State.
The Oireachtas, in framing the NAMA Act, ensured that NAMA would be independent in its decision making so as to avoid a position where persons would seek to influence decision-making in a way that would serve only certain vested interests. By extension, such interference would be detrimental to the interests of Irish taxpayers.
93. Deputy Michael McGrath asked the Minister for Finance the number of legal actions in which proceedings have been issued against the National Asset Management Agency; and if he will make a statement on the matter. [38774/15]
View answerI am advised that legal proceedings have been issued against NAMA or a NAMA group entity in 66 cases, of which 40 cases are ongoing. I am further advised that 26 cases have been completed. 25 of those completed cases resulted in a favourable outcome for NAMA whilst 1 case resulted in a partly favourable outcome for NAMA.
94. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland keeps a record of the number of bank branches; the current number in operation; the total number in 2011; and if he will make a statement on the matter. [38775/15]
View answerThe Central Bank of Ireland's registers (http://registers.centralbank.ie/) record the credit institutions authorised under Irish legislation to carry on banking business in the State, and those credit institutions authorised in other Member States of the European Economic Area (EEA) to carry on business in the State without receiving further authorisation from the Central Bank of Ireland, pursuant to the terms of the EU Directive, 2013/36/EU relating to the taking up and pursuit of the business of credit institutions.
The Central Bank does not maintain a record of the number of bank branches in the State.
95. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland keeps a record of the number of automated teller machines, including those in non-bank settings; the current number in operation; the number in 2011; and if he will make a statement on the matter. [38776/15]
View answerThe Central Bank of Ireland does not keep a record of the number of ATMs in Ireland. However, such data is available in the public domain on the website of Banking & Payments Federation Ireland (the representative body for the payments industry in Ireland) at the following link: http://www.bpfi.ie/publications/bpfi-payments-monitor/.
BPFI's most recent data shows there were 3,065 ATMs in the country in 2014. In 2011 there were 3,192.
96. Deputy Michael McGrath asked the Minister for Finance if his Department has been provided with an estimate of the possible impact of rent control measures on the National Asset Management Agency's activities; and if he will make a statement on the matter. [38777/15]
View answerI have not sought or received an estimate of the potential impact on NAMA's activities of any possible rent control measures given that no such measures have been specified.
97. Deputy Michael McGrath asked the Minister for Finance if his Department has been provided with an estimate of the possible impact of rent control measures on the value of the State’s bank holdings; and if he will make a statement on the matter. [38778/15]
View answerI have not sought nor received an estimate of the impact from any possible rent control measures on the value of the Irish State's bank holdings. Given that no such measures have been specified, speculation on the impact of potential future rent policy would be premature. Nonetheless, it is the view of my officials that the relationship between rental market controls and the value of the State's shareholdings in Irish banks would be limited, if any.
98. Deputy Michael McGrath asked the Minister for Finance his views on the warning from the Governor of the Central Bank of Ireland that potentially temporary increases in Government revenue are being used to fund permanent increases in expenditure; and if he will make a statement on the matter. [38779/15]
View answerGovernor Honohan, as is normal practice, provided me with his insights and advice on the Irish economy in advance of Budget 2016. He rightly highlighted some of the key risks facing the economy, including any potential for mismanagement of the public finances and using once off revenues to underpin long term expenditure commitments. I am, of course, conscious of these issues.
I would make the point that Budget 2016 represented the first Budget framed under the preventive arm of the Stability and Growth Pact. The preventive arm is designed to prevent the boom bust cycles of the past from recurring.
For example, fiscal space estimated under the expenditure benchmark was derived with reference to the potential growth rates of the economy. This means that temporary or cyclical increases in revenue have no bearing on the fiscal space used to frame budgetary policy.
Similarly, with regard to the minimum annual improvement in the structural balance, the estimate of the structural balance excludes the impact of cyclical revenues. This will help ensure that expenditure commitments are based off a sustainable revenue base.
Further, one-off proceeds from asset sales, such as the State's shareholding in the banking sector, cannot be used to finance day-to-day expenditure. The statistical treatment of such revenues is such that they will primarily be directed towards reducing Ireland's elevated debt level. This will help underpin Ireland's fiscal sustainability over the medium term.
In summary, Ireland has been down this road before with ruinous consequences for the country and I will not facilitate permanent expenditure increases on the back of temporary revenues. The new fiscal framework will help ensure that this is the case.
99. Deputy Michael McGrath asked the Minister for Finance if a contingency plan exists for the re-issuing of Irish punts; when that plan was drawn up, if it exists; when it was last reviewed; and if he will make a statement on the matter. [38780/15]
View answerAs I have previously stated in answer to parliamentary questions, it would not be appropriate to publish the details of such contingency planning. Also, as I previously stated in answer to Parliamentary Question No. 215 of 10 March 2015, "at no point in 2011 (or since) were Irish pounds being printed." This is not to state that no contingency plans were developed or that no consideration was given to the steps which could become necessary had the crisis ongoing escalated to the point that the Euro was no longer available as a functioning currency.
100. Deputy Michael McGrath asked the Minister for Finance the amount of funding that had been drawn down under the EU-IMF programme when the Government took office in March 2011, and the remaining amount of funding available under the programme at that point; and if he will make a statement on the matter. [38781/15]
View answerThe Government took office in early March 2011. I am informed by the NTMA that by that time there had been three EU/IMF Programme disbursements, totalling approximately €14.4 billion. This is net of a prepaid margin of €0.53 billion deducted from the EFSF disbursement of 1 February 2011. Given total external EU/IMF Programme funding of €67.5 billion, the funding remaining available under the Programme at that time was just over €53 billion.
101. Deputy Michael McGrath asked the Minister for Finance the cash balance held by the National Treasury Management Agency when the Government took office in March 2011; and if he will make a statement on the matter. [38782/15]
View answerThe National Treasury Management Agency (NTMA) has advised that total Exchequer cash and other financial assets stood at €25.2 billion at end-February 2011, of which €21.5 billion was in the form of readily accessible Exchequer cash and other short-term investment balances.
The end-February 2011 position reflected EU-IMF Programme drawdowns of over €14 billion in the first two months of 2011.
At end-October 2015 total Exchequer cash and other financial assets stood at €16.9 billion, of which €14.2 billion was in the form of readily accessible Exchequer cash and other short-term investment balances.
102. Deputy Michael McGrath asked the Minister for Finance the number of applicants who were shortlisted for the post of Governor of the Central Bank of Ireland to succeed a person (details supplied); the number who were interviewed, the number who were shortlisted who are based overseas and the number who were employed in the private sector; the amount of money the Central Bank of Ireland paid a recruitment agency to help employ a person for the post; and if he will make a statement on the matter. [38783/15]
View answerAn extensive national and international executive search process was undertaken to identify suitably qualified candidates in Ireland and abroad for the position of Governor of the Central Bank of Ireland. Public calls for applications were published on the Department of Finance, Central Bank and Public Appointments Service websites, as well as an advertisement being placed in the Financial Times. A leading executive search firm with international reach, Merc Partners, managed responses to these calls, and ran a parallel search process contacting over 100 relevant parties (potential candidates and people that could recommend potential candidates).
From these processes, 17 candidates were short-listed and underwent preliminary interviews, eight of whom are based overseas. A breakdown of those employed in the private sector is not available. After considering the short-list of candidates and receiving briefing from the recruitment agency, the interview panel selected four candidates for final interview (two of whom were based overseas).
The position of Governor of the Central Bank is of unique importance to the Irish financial system and the Irish economy. As such it was vital that the search and selection process was wide-ranging and rigorous, so as to employ the best candidate in this key role. For this purpose, the Department of Finance engaged Merc Partners. The Central Bank was not involved in the recruitment process as under section 19 of the Central Bank Act 1942, the appointment is made by the President on the advice of the Government. A final invoice is awaited for the services provided by Merc Partners, so I am not currently in a position to furnish to the Deputy the amount paid for these services.
