Tuesday 15 October 2019

State gets €12.7bn back from banks since guarantee

Minister for Finance, Michael Noonan
Minister for Finance, Michael Noonan

Gordon Deegan

The State has received over €12.74bn from all bank-related levies, investment income and disposal of investments since the bank guarantee of 2008.

That's according to the Minister for Finance, Michael Noonan, who confirmed that between April 2010 and May 2015 the State received €6.58bn from the disposal of investments by the banks covered by the guarantee - Bank of Ireland, AIB and Permanent TSB.

In addition, Minister Noonan confirmed that the State has received €6.16bn in income, fees and the bank levy from the banking sector since 2008.

However, the €12.74bn income generated from the bank industry here is a fraction of the €64bn that tax-payers were forced to pledge to rescue the nation's banks after the worst real estate crash in western Europe.

In his detailed written Dail response to Deputy Joanna Tuffy (Lab), Minister Noonan said that the Government has raised €4.65bn from the Bank of Ireland through the disposal of investments.

In addition, the Government has received €1.88bn from the sale of Permanent TSB disposals including €1.34bn from the sale of Irish Life, while the State has raised €50m from the cancellation of AIB preference share warrants.

The State received €154m from the introduction of the bank levy in Budget 2014 with €130m received AIB, the Bank of Ireland and Permanent TSB.

Minister Noonan confirmed to Deputy Tuffy that €4.4bn of the €6.16bn came from payments by banks under the Eligible Liabilities Guarantee scheme (ELG) in relation to the bank guarantee.

Meanwhile, in a separate Dail reply to Fianna Fail Finance spokesman Michael McGrath, Mr Noonan confirmed that the estimated tax paid by companies operating out of the International Financial Services Centre (IFSC) in Dublin totalled over €950m in 2013.

In a breakdown provided to Deputy McGrath, Mr Noonan said firms at the IFSC paid out €621m in 2013 and he said the associated PAYE and USC is tentatively estimated to be around €332m, giving a total of €953m.

Irish Independent

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