IBRC Legislation: As it Happened
Updated: Thursday, 07 Feb 2013 03:03Tap here to refresh
The Dáil has passed emergency legislation which seeks to wind up Irish Bank Resolution Corporation.
The Dáil has passed emergency legislation which seeks to wind up Irish Bank Resolution Corporation.
- IBRC business and operations to be wound up
- Net debt owed by IBRC to the Central Bank and its associated floating charge security will be purchased by NAMA
- Ministerial Guarantee underpinning the net debt owed to the Central Bank will also be transferred to NAMA
- All employee contracts will be terminated on the winding-up of IBRC
Main Provisions of the Bill
Section 6 provides for an immediate stay on all proceedings against IBRC
Section 7 provides for the appointment of the Special Liquidators
Section 8 limits the power to grant injunctive relief in certain proceedings
Section 12 provides for the sale or transfer of assets and liabilities in IBRC
Section 17 provides that the Minister may issue securities
The Irish Bank Resolution Corporation Act 2013 has been voted through Committee Stage - it is now being sent to the Seanad.
Michael Noonan has said "there isn't any deal done" in relation to the promissory note.
He said he might be in a position to give detail of any deal later today but at present he had nothing to tell the Dáil.
Stephen Donnelly asks how long it will be until there is an indication of a resolution over the promissory note talks with the ECB.
Michael Noonan is now referring to a number of questions raised by TDs as part of the Committee Stage.
The Bill is now going through Committee Stage, which has been limited to 15 minutes of debate.
The Dáil has voted to pass the 2nd stage of the Irish Bank Resolution Corporation Act 2013 by 113 votes to 36.
TDs are currently voting on the Irish Bank Resolution Corporation Act 2013, which will allow for the winding up of IBRC.
Michael Noonan said he would prefer that they did everything together - referring to a deal on the promissory note - but that has not been possible.
"Don't concentrate so much on the detail, look at the purpose" said Mr Noonan
The Attorney General has "Constitutionally proofed" the IBRC Act 2013, according to Mr Noonan.
Mr Noonan said the details of the planned liquidation of IBRC was released by "international agencies" and the Government ended up in a position where it could not deny the details of its plan.
He said at this stage they had to act to introduce the legislation.
Michael Noonan said it is unheard of for a liquidation to be announced only for it not to be implement immediately.
He said leaving such a gap would allow creditors to strip the company of its assets, and debtors to refuse to pay because they know the company is about to be liquidated.
Luke Ming Flanagan asked how much money the proposed deal would save us a year - he said it would be €800 million a year at the most.
He claimed that Ireland’s problems started when the country joined the Euro.
Independent TD Mattie McGrath has told the Taoiseach that he was "a disgrace to his people".
He added that it was a disgrace, when hundreds of IBRC employees are losing their jobs tomorrow, no senior executive or accountant has been brought to trial.
Mattie McGrath, Mick Wallace, Luke Flanagan, Catherine Murphy and Thomas Pringle are now sharing the Technical Group's speaking time.
"You want to wind down this bank but you don't want to wind down its debt", says Gerry Adams.
Sinn Féin leader Gerry Adams asks why the Dáil cannot be told what the Government's promissory note proposals to the ECB are.
Mr Martin says he has confidence in Central Bank Governor Patrick Honohan, who is working to find a deal on the promissory note with ECB.
He also says that Mr Honohan said there would have been "catastrophic" consequences had the bank guarantee not been passed.
"We're told this is part of a solution but we've no detail of this" says Micheál Martin.
TDs have had less time and less briefing "than in comparable situations in the past" according to Fianna Fáil leader Micheál Martin.
Eamon Gilmore said the biggest issue that some in the Dáil had was that the Government was succeeding in its attempts to improve the terms of the bailout.
He said that NAMA will pursue any legal proceedings that were being taken by the IBRC against debtors.
Tánaiste and Labour leader Eamon Gilmore said the legislation will do what should have been done on the night of the bank guarantee.
Enda Kenny said there was now an opportunity for the ECB to act to help Ireland's economic recovery.
He said the end of IBRC would mark the end of a dark chapter in Irish political history.
The suffering of the Irish people has been made much worse by the debt of the likes of Anglo Irish Bank, says Enda Kenny.
Without banking costs, Ireland's debt levels would now be below Germany's, he says.
Enda Kenny said the disappearance of Anglo Irish Bank and Irish Nationwide from the Irish financial landscape was "long overdue".
He said they have become emblems of cronyism in the country and "a dent in our national pride".
Taoiseach Enda Kenny is now addressing the Dáil on the emergency legislation.
Stephen Donnelly said the emergency Bill gives the Minister for Finance the authority to turn the promissory note into a bond without the Dáil's approval.
He said there was a chance that a section of the legislation would be deemed unconstitutional.
Independent TD Stephen Donnelly said it is the Constitutional obligation of the Dáil to hold the Cabinet to account.
He said that if the House passes the legislation it will have failed in that obligation.
Socialist Party leader Joe Higgins says "this is a chaotic and grotesque way to run a State".
Senator Colm Burke -
@SenColmBurke: "Seanad resumed sitting at 12.30am and is adjourned to 2.30am. Waiting for emergency legislation to come from Dail."
People Before Profit Alliance TD Richard Boyd Barrett says the way the emergency legislation on the winding up of IBRC has been rushed through the Oireachtas late at night echoes the bank guarantee put forward by the previous Government.
Shane Ross says TDs cannot vote for the liquidation of IBRC without knowing the other side of the deal - referring to the Government's proposals on the promissory note.
"I cannot vote on a Bill in a vacuum," he said.
The Government's emergency legislation was only agreed an hour ago, while briefings for TDs only lasted ten minutes according to Shane Ross.
The Technical Group of TDs is sharing its 15 minutes of speaking time between Shane Ross, Richard Boyd Barrett, Joe Higgins & Stephen Donnelly.
Sinn Féin would not object to the remnants of Anglo Irish Bank being liquidated, however they party believes the promissory note should go with it; says Pearse Doherty.
"This is the type of politics that Fianna Fáil had practised for far too long", says Sinn Féin's Pearse Doherty.
Pearse Doherty said 850 employees of IBRC were informed that their jobs were gone through Bloomberg.
He criticised Michael Noonan for the lack of information that was made available about the promissory note proposals and the plan to wind up IBRC.
Sinn Féin's Pearse Doherty has referred to the Government's deferral of last year's promissory note payment.
He said that was heralded as a good deal for the State but the detail showed that was not the case.
Fianna Fáil's Michael McGrath said he is willing to accept "in good faith" the Minister for Finance's claim that emergency legislation is need to protect IBRC's assets.
He said the party has no objection in principle to the winding up of IBRC but he does have issue with the way in which the Government has put forward the legislation.
Read Michael Noonan's speech introducing the Irish Bank Resolution Corporation Act 2013 to the Dáil.
Fianna Fáil's Michael McGrath said the legislation is potentially a "legal minefield" due to the various lawsuits the bank is involved in.
He said many parties would be "pouring over" the Bill to see if it gives them any advantage and he hoped that the proposed law was "Constitutionally-proofed".
Mr McGrath said TDs were still unclear about the detail of the Government's proposal to replace the Anglo promissory note.
Fianna Fáil's Michael McGrath has criticised the way the Government has gone about bringing its emergency legislation to the Dáil.
The Government had hoped to announce the liquidation of IBRC "in tandem" with an announcement from the ECB, however Mr Noonan said he understood this would not come until later on Thursday at the earliest.
Michael Noonan said it was necessary to keep the plan to liquidate IBRC confidential until now.
The move to liquidate IBRC is unique and does not affect other Irish banks, says Mr Noonan
Michael Noonan is outlining the process of liquidation that IBRC will go through once the legislation is passed.
All employment contracts at IBRC will be immediately terminated once the company is liquidated, says Michael Noonan.
However he says much of the staff will be re-hired to help the transition of the bank's assets to NAMA.
Minister for Finance Michael Noonan says the ECB is considering a proposal from the Government over the promissory note.
He said the first step of this proposal was the liquidation of IBRC.
Once this plan was made public, Mr Noonan said it was vital to move quickly to protect the assets of the bank.
TDs are now re-entering the Dáil chamber to resume their session debating the Government's emergency legislation on IBRC.
Taoiseach Enda Kenny and Minister for Finance Michael Noonan are among those taking their seats.
Economist David McWilliams -
@davidmcw: "Game, set,match to ECB.It gets everything it wants with new bond. We get more debt.Brings closer sov' default when bond bubble bursts."
The Irish Bank Resolution Corporation Bill 2013, which the Dáil and Seanad are due to debate, has been published.
The Dáil has been suspended until midnight to give TDs time to read the Government's emergency legislation on IBRC.
Enda Kenny has said that opposition TDs had been briefed on what was "a technical Bill".
He said the Bill had to be passed tonight in order to safe-guard the assets of IBRC.
Sinn Féin's Gerry Adams has said that more time is needed to digest the legislation.
People Before Profit Alliance TD Richard Boyd Barrett has said finance spokespeople were given a rushed briefing 15 minutes before the Dáil reconvened.
He said the matter was too serious to be "rammed through in this manner".
Taoiseach Enda Kenny offered to adjourn the Dáil until 11.30pm to allow members to read the legislation, however the suggestion did not gain the agreement of opposition parties.
Fianna Fáil's leader Micheál Martin has said his party's members has not had time to read the Government's Bill.
Mr Martin sought an adjournment of the House to allow for a preliminary reading of the legislation.
He said it was extraordinary to expect people to vote on a Bill that they had not seen.
The Dáil has resumed to allow for the Government to put forward emergency legislation that will allow it to wind up the Irish Banking Resolution Corporation.
The Press Association says that a formal decision on whether the ECB has signed-off on Ireland's promissory note proposal is not expected until tomorrow afternoon.
The IBRC Bill 2013 was distributed to TDs through their pigeon holes in Leinster House shortly before 10.30pm.
According to the Explanatory Memorandum, the aim of the Bill is to wind up the IBRC, end the exposure of the State to the IBRC, help to restore the financial position of the State and help to enable the State to re-establish normalised access to the international debt markets.
It says that the Minister for Finance shall, after the legislation is passed, make a "Special Liquidation Order" to wind up IBRC and that after this Order is made, no person can apply to wind-up or appoint an examiner to any subsidiary of IBRC without the consent of the Special Liquidator.
Fine Gael TD Jerry Buttimer -
@jerrybuttimer: "Hot off the press as Dail reconvenes pic.twitter.com/ySDQGO5h"
The Dáil has been suspended until 11pm, a half hour later than previously indicated.
A statement from the People Before Profit Alliance has said that Richard Boyd Barrett TD, along with other finance spokespersons, is about to be briefed on the Government's emergency legislation due to be put to the Dáil this evening.
Fianna Fáil leader Micheál Martin -
@MichealMartinTD: "Unbelievably, we're minutes from the start of debate and still no detail on what we're to debate..."
Opposition sources are saying they still have no copy of the legislation and no briefing from Government, with the Dáil due to resume in ten minutes.
A Government amendment to the Technical Group private members motion on the promissory note has been passed by 88 votes to 44.
The Government won the debate.
Following the vote the Dáil has been suspended until 10.30pm, at which point the IBRC Resolutions Act 2013 will be put forward.
A Government motion for a late sitting of the Dáil went to a vote and has been passed by 86 votes to 44.
TDs are now voting on the promissory note private members business.
The legislation due to be debated in the Oireachtas this evening will be the 'IBRC Resolution Act 2013'.
RTÉ's Europe Editor Tony Connelly -
@tconnellyRTE: "ECB spokesperson continuing to say that "talks are continuing" on promissory note in Frankfurt, despite emergency Dail session #anglo #ecb"
The Dáil is due to sit for two hours and ten minutes from 10.30pm in order to pass emergency legislation relating to IBRC.
The legislation will go to the Seanad at approximately 12.45am.
Government chief whip Paul Kehoe has said the ECB was seeking a proposal from Government and the leaking of some elements was unfortunate.
In the face of these leaks, he said the Minister for Finance had taken steps to secure IBRC.
Mr Kehoe said the Government was working extremely hard to secure a deal and it was optimistic that an arrangement agreeable to all parties could be found in the format of the current discussions.
President Michael D Higgins has just departed Rome for Dublin, in order to make himself available in the event of there being legislation to consider.
He is travelling on the Government jet and intends to return to Italy tomorrow.
The Cabinet is due to meet at 8:45pm to discuss the terms of a deal on promissory notes ahead of special sessions of the Dáil and Seanad called to pass emergency legislation.
Government Chief Whip Paul Kehoe has confirmed to RTÉ News that the Dáil will reconvene at 10pm to consider the emergency legislation.
Earlier, there had been uncertainty after indications from the ECB that a deal on Ireland's promissory notes might not happen tonight.
RTÉ Europe Editor Tony Connelly reports that a spokesperson for the ECB said talks on a possible deal on promissory notes were continuing in Frankfurt.
RTÉ News understands there will be no announcement of any breakthrough tonight.
The now former chairman of IBRC has told RTÉ News that the board of the bank has been stood down.
Alan Dukes said that the board has not been liquidated but has been stood down and designated persons from KPMG have taken control of the institution.
As a consequence, Mr Dukes said he is no longer chairman of the bank.
President D Higgins turned up for his engagement as scheduled at the Villa Spada - this evening, despite rumours circulating that he would be required to cut short his official trip to Italy to return home urgently
Bloomberg's Bureau Chief Dara Doyle @daradoy
*NOONAN SAID TO CANCEL ANGLO SPEECH AS ECB DELAY DECISION
RTÉ's Europe Editor Tony Connelly explains exactly what is a promissory note in a blog post published last March http://bit.ly/UAjE6s
The debate on the Technical Group's Private Members' Motion on the promissory note has resumed in the Dáil.
Sinn Féin's Brian Stanley said there were no grounds for paying the promissory note while working people and children were suffering.
He said he hope there was news on the promissory note tonight.
RTÉ's The Late Debate will have the latest on the liquidation of IBRC - What it means and the full economic and political reaction. Tune in to RTÉ Radio One from 10pm
From RTÉ Business Editor David Murphy
@davidmurphyRTE "For all you asked: Yes, Ireland will still owe the money. The only benefit is that payments will be spread over a longer period."
"Also, the payments will be interest only. The capital will be repaid at the end of the maturity of the bonds."
Bloomberg’s bureau chief in Dublin says a final ECB decision on an Irish plan may not come in the next 24 hours. Officials are said to want more time to weigh the decisions.
The board of the former Anglo Irish Bank, now known as IBRC, is "liquidated as of now", its chairman Alan Dukes has told Reuters.
"The board is liquidated as of now, the functions of the board are being taken over by KPMG," Mr Dukes said.
KMPG's Padraic Monaghan has been given responsibility for running IBRC's board, but has not been appointed liquidator, a source familiar with the situation told Reuters.
Staff at IBRC were informed of KPMG's appointment by email this evening.
A liquidator is expected to be appointed imminently.
Independent TD Shane Ross (@Shane_RossTD) has tweeted: "Waiting news whether Dail sits late to liquidate Anglo.Our motion on Anglo has 90 minutes to go starting in 45 minutes.What will they say?"
Fianna Fáil Finance spokesman Michael McGrath said if speculation is correct and the Government is to strike a deal, its success would be measured by the impact on the general public.
"People will want to see a difference in their pockets," Mr McGrath said.
"They will want to see a difference on the high street. They will want to see a difference in the retail sector."
He added: "The question is how will this impact on the Budget? I believe, and I've said this a number of times, a good deal could have a very tangible impact on the next budget.
"The Government is looking to take €3.1bn out of the economy next year. A good deal would reduce that very substantially."
The bonds, which could replace the promissory notes, would range in maturity from 25 years to 40 years.
It is expected there would be a deficit saving from 2014 onwards of about €1bn.
The €3.1bn annual repayments due under the promissory note would be replaced with significantly lower interest only repayments.
The union representing workers at IBRC says it will seek an urgent meeting with the Minister for Finance and the liquidators.
IBOA's Larry Broderick says around 800 people are employed by IBRC -mainly on permanent contracts.
He said staff were "shocked" at tonight's developments.
Kieran Wallace of KPMG is poised to be named as liquidator to IBRC, formerly Anglo.
It is understood a special manager would also be appointed to the bank.
Under the deal the promissory note would be replaced with a number of bonds which would have average maturity of 27 years.
Fianna Fáil has said it has not yet been given any details of any emergency legislation to be passed by the Oireachtas, or on whether it is definitely going ahead.
Finance Spokesperson Michael McGrath said they would have to look at the detail of any legislation before deciding whether to support it or not.
Mr McGrath said they would have questions to ask, the most important being whether any deal eased the burden on ordinary people.
The Government plans to liquidate the Irish Bank Resolution Corporation, formerly Anglo Irish Bank, as part of changes to replace the promissory note with a new financing arrangement.
It is reported Minister for Finance Michael Noonan will make a statement about the plans tonight.
The new arrangements need the backing of the ECB's Governing Council, which is meeting in Frankfurt this evening ahead of a formal meeting tomorrow.
Central Bank Governor Patrick Honohan, Ireland's representative on the council, will put a revised plan to his fellow central bank governors this evening, a source has said.
The new arrangement should reduce the annual €3.1bn cost of financing the promissory note by pushing repayment of the principle out into the future. However, it would not reduce the total sum to be repaid.