State stake in AIB has climbed to €15bn value
Published 03/12/2015 | 02:30
The value of the Government's stake in state-owned AIB is now thought to be €15bn - close to €2bn more than estimated at the end of last year.
The updated valuation was carried out as part of the capital reorganisation of the state-owned lender, which will begin the process of repaying a portion of the €21bn taxpayer bailout.
Derek Moran, secretary general of the Department of Finance, will tell the Public Accounts Committee today that the State's 14pc stake in Bank of Ireland is worth around €1.6bn, the near 75pc share in Permanent TSB is valued at €1.4bn, and the 99.8pc stake in AIB is worth €15bn.
He will describe AIB as an "extremely valuable asset for the State".
Meanwhile, the latest exchequer returns released yesterday confirmed that the Government has collected almost €3bn more than it expected in tax up to the end of November, with corporation tax accounting for the bulk of the over-performance.
Some €41.97bn had been brought into the State's coffers by the end of last month - 7.5pc higher than initially targeted.
Key tax heads including income tax and VAT remain above expectations, with income tax bringing in €16.57bn, up 0.3pc, while VAT totalled €11.76bn, up 3pc. Corporation tax receipts were up a massive 57.7pc on what was expected, at €6.36bn.
Month-on-month, a surge in VAT and corporation tax receipts, which were 11pc and 24pc better than targeted respectively, helped push the amount taken in to €6.9bn, €470m better than targeted.
For the first 11 months of the year, the Exchequer posted a surplus of €343m, which compares with a deficit of €5.8bn in the same period of last year.
The Revenue Commissioners said that the bulk of the over-performance in corporation tax is set to be repeated next year, amid concerns that it may not be sustainable.
Experts hailed the figures as showing a dramatic turnaround in the public finances. Philip O'Sullivan of specialist bank Investec said the data "reveals a very strong performance".
The Department of Finance also confirmed that an extra €665m had been signed off for the Department of Health, as part of the extra €1.5bn in supplementary spending approved before the Budget. The balance is expected to be allocated during December, including for the Christmas Bonus.
Ian Talbot, Chambers Ireland chief, said the exchequer statement was positive but cautioned spending plans must be based on sustainable revenue.