Wednesday, 10 July 2019

Ceisteanna (149)

Joan Burton

Ceist:

149. Deputy Joan Burton asked the Minister for Finance the dividends received from the public shareholdings in Irish banks in 2018; the manner in which the revenue was used; the projected dividends expected in 2019; his policy on the use of dividends from the State shareholdings in financial resolutions; and if he will make a statement on the matter. [30317/19]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

The State's shareholding in Allied Irish Banks and Bank of Ireland are directed investments under the Strategic Investment Fund (ISIF) and it receives dividends from these investments. The state's shareholding in PTSB is held by the exchequer, the bank has not paid a dividend in recent years.

The following dividends were received by the ISIF in 2018 and 2019:

Irish Banks

2018

2019

AIB

€232m

€328m

BOI

€17m

€24m

Please note that the dividend received by the ISIF in each year relates to the previous financial year in the banks. Hence the dividend received in 2018 relates to AIB's/BOI's 2017 financial year etc.

The ISIF allocates the dividends received into its discretionary portfolio for investment. Under the ISIF's investment strategy ISIF investments must be made on a commercial basis and in a way that supports economic activity and employment in the State. The latest strategy was announced on 1st February 2019 and can be found at https://isif.ie/news/press-releases/ireland-strategic-investment-fund-announces-new-investment-strategy-to-focus-on-5-key-priority-themes-and-publishes-update-on-2018-investment-performance.

The Deputy should note that the Government is not permitted to make withdrawals from the Discretionary Portfolio before 2025. Beyond 2025, the ISIF can make a dividend payment of up to 4% per annum to the Exchequer. Further details can be found in this publication on the ISIF from the Parliamentary Budget Office (PBO): https://data.oireachtas.ie/ie/oireachtas/parliamentaryBudgetOffice/2019/2019-02-14_an-overview-and-analysis-of-the-ireland-strategic-investment-fund_en.pdf.