IBRC Liquidation

Dáil Éireann Debate, Wednesday - 1 May 2013

Wednesday, 1 May 2013

Ceisteanna (49)

Catherine Murphy

Ceist:

49. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if he has sought information from local authorities on their total financial exposure to the special liquidation process of the Irish bank Resolution Corporation; if he will provide a breakdown of all deposits and-or bonds placed by local authorities in IBRC; if he has received any assurances that such deposits will be recoverable; and if he will make a statement on the matter. [20299/13]

Freagraí scríofa

Minister for the Environment, Community and Local Government

It is a matter for each local authority to manage its own day-to-day finances in a prudent and sustainable manner, including investment arrangements for moneys received.  Information on individual local authorities’ investment arrangements is not available in my Department.

I am advised that development bonds that were previously entered into by IBRC in favour of individual local authorities remain in place. However, any liabilities arising under these arrangements, if called upon, may rank as unsecured claims in the special liquidation. These bonds are contingent liabilities and would only be called upon where developers breach planning conditions and are not in a position to meet any liability that arises as a result.

Local authorities must deal with the special liquidators directly in relation to their specific financial arrangements with the former IBRC.

Question No. 50 answered with Question No. 26.

Question No. 51 answered with Question No. 25.