Central Bank of Ireland

Dáil Éireann Debate, Tuesday - 21 May 2013

Tuesday, 21 May 2013

Ceisteanna (273)

Pearse Doherty

Ceist:

273. Deputy Pearse Doherty asked the Minister for Finance if he will detail further to his statement to the Joint Committee on Finance, Public Expenditure and Reform on Wednesday, 8 May 2013 that 10 days prior to the Committee hearing, the Central Bank of Ireland notified his Department that it had excess profits of about another €120 million or €125 million; if he will confirm if this is in addition to the €1.1 billion after retained earnings of profits announced by the Central Bank of Ireland in the publication of their annual report on the 30 of April 2013 that was paid to the Exchequer; if he will confirm whether the extra €120 or €125 million is above the calculations his Department had expected to be paid to the Exchequer from the Central Bank of Ireland in its published Pro Forma Transaction Impact Analysis – State Finances (Based on No Policy Change) document, and if so by how much; if he will provide an adjustment of the calculations in this document based on any changes to their assumptions; and if he will make a statement on the matter. [24261/13]

Freagraí scríofa

Minister for Finance

The Central Bank is required to pay its surplus income in respect of the preceding year to the Exchequer each year. As such, the promissory note restructuring had no bearing on the amount payable to the Exchequer in 2013. The Bank's surplus income is generally made up of its profit on the investment of its reserves less depreciation and appropriation of profit to its General Reserve. The Central Bank (and its precursor the Currency Commission) has been paying its surplus income to the Exchequer since 1927 (Section 63(7) of the Currency Act 1927). When Budget 2013 was being prepared, the Bank estimated that, as far as it could tell at that time, its surplus income in respect of 2012 would be €1.040 billion and this figure was included in the budgetary arithmetic for 2013. In the event, the surplus income came to €1.1476 billion, as detailed in the Bank's annual report for 2012, and this amount was paid over to the Exchequer earlier this month.