Wednesday, 23 January 2019

Ceisteanna (70, 71, 73)

Marc MacSharry

Ceist:

70. Deputy Marc MacSharry asked the Minister for Finance the name of the professional service providers that received payments from the joint special liquidators of IBRC since the liquidation on 7 February 2013; the amounts paid in each case; and if he will make a statement on the matter. [3235/19]

Amharc ar fhreagra

Marc MacSharry

Ceist:

71. Deputy Marc MacSharry asked the Minister for Finance the amount paid to the joint special liquidators of IBRC since the liquidation commenced on 7 February 2013 in respect of fees, party costs and the details of credit notes or deductions provided by joint special liquidators and third party service providers in respect of their fees; the breakdown and basis for same; and if he will make a statement on the matter. [3236/19]

Amharc ar fhreagra

Marc MacSharry

Ceist:

73. Deputy Marc MacSharry asked the Minister for Finance if he has written or communicated to the joint special liquidators of IBRC since the liquidation commenced on 7 February 2013 in relation to their costs in the liquidation which are estimated to exceed €300 million; if copies of such letters and communications will be provided; and if he will make a statement on the matter. [3238/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 70, 71 and 73 together.

The most recent IBRC special liquidation progress update report was published in May 2018 (https://www.finance.gov.ie/updates/ibrc-progress-update-report-year-ended-31-december-2017/) and provides a detailed overview of the fees and all other third party costs associated with the liquidation of IBRC for the period from the date of the liquidation to 31st December 2017.

For the 59 months since the start of the liquidation in February 2013 to 31st December 2017, professional and legal fees for the special liquidation totaled €239m (net of €8m rebate negotiated by the Department of Finance). The Joint Special Liquidators have indicated their expectation that the liquidation of IBRC should be substantially completed by the end of 2022 at a total estimated liquidation cost of between €291m-€306m, however it is important to note that this is subject to change depending on future events which are outside the control of the Joint Special Liquidators.

The net fees earned by the KPMG special liquidation team were €144.9m (net of a €5m rebate). The scope of work undertaken by the Special Liquidators is outlined in detail in each of the five progress update reports, all of which are available on the Department of Finance website. Details of payments made to other significant legal and professional advisors during this period are also set out in that report.

Excluding the cost of regulatory and compliance activity, the overall KPMG liquidation fees have reduced significantly in recent years. It is not my Department's practice to pass out records of the type requested in response to a Parliamentary Question.

Page 44 of the most recent progress update report details the fees paid to legal advisors and other professional advisors for the period from the date of the liquidation to 31st December 2017. 

Page 42 of the most recent progress update report details the cost management undertaken by the Special Liquidators. These are the various steps taken by the Special Liquidators when hiring legal and third party advisors/contractors to ensure costs are managed efficiently and minimized while ensuring the orderly wind up of IBRC.

I am advised that a further progress update report is due to be published by the Special Liquidators in H1 2019 which will provide a further update on fees and costs for the period to 31st December 2018. 

It is not my Department's practice to publish documentation of the type requested in response to a Parliamentary Question.