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Seanad
‹ Order of Business

Siteserv transaction review

Summary

The Leader responds to concerns about the Siteserv sale, describing a Department of Finance review of IBRC’s decisions and the transaction’s impact on recovery.

I certainly have an issue with it. The matter should be highlighted with the Minister.

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The Senator asked the question and I am trying to respond to the best of my ability and give him facts rather than fiction.

On receipt of the critical representations following the transaction, in May 2012 Department of Finance officials agreed with the chairman and CEO of IBRC that they would review the transaction involving Siteserv in greater detail to better understand the decisions taken and the impact they had on the process and final recovery for the bank. Through the review which took place in June 2012 Department of Finance officials were made aware of certain aspects of the transaction which raised concerns about the quality of some of the decisions taken on the transaction, including concerns that legal advisers to Siteserv had also acted for the purchaser, that a payment had been made to the shareholders of Siteserv and that some of the shareholders were members of the board of Siteserv. A significant proportion of them appeared to be clients of Davy, the financial adviser in the transaction involving Siteserv.

In the light of these concerns the shareholding management unit of the Department of Finance recommended that the chairman of IBRC commission an independent review of the transaction. This was included in the briefing note to the Minister prior to his meeting with the chairman and CEO of IBRC whom he subsequently met to discuss the concerns about the transaction. They confirmed that the legal advice had been provided by two different teams within the law firm concerned and that the appropriate Chinese walls had been in place between the two. They also gave assurances that the payment to the shareholders had been necessary to ensure a vote in favour of the deal. They gave further assurances that the transaction had been thoroughly assessed by the IBRC board and managed in the best manner possible to achieve the best result for the State.

Notwithstanding the fact that the new relationship framework had been put in place, it was decided that a senior Department of Finance official would be seconded to IBRC to explore opportunities for deleveraging with a view to maximising recovery for the taxpayer. This had the additional benefit of providing for greater oversight while supporting the managerial team.

That deals comprehensively with the question asked and I hope the Senator is happy with the answer.

As regards Garda resources, an issue also raised by the Senator, the Government is certainly dealing with the matter. Up to 600 garda recruits have passed through the college in Templemore since it was reopened. We will continue to provide the resources necessary for the Garda.

Senator Colm Burke spoke about the purchase of medication online and highlighted the risks in that regard. As the Senator mentioned, it is very important that people be aware of the risks in purchasing medication online.

Senator Fidelma Healy Eames referred to mobility allowances. I suggest she propose a Commencement matter to get a response from the relevant Minister.

A levy on banks is one of a number of actions being considered by the Government which I am sure will deal with the matter soon. Senator Paul Coghlan discussed the need for the Credit Review Office to become involved with the banks on the issue of variable mortgage interest rates.

Senator Gerard P. Craughwell spoke about Siteserv, a matter I have addressed. Regarding in-service training for teachers, the Minister for Education and Skills has been actively involved in the negotiations to resolve the dispute. It is regrettable that it is continuing. While the Minister has indicated she is willing to speak at all times, she has put her proposal and moved quite a lot on the issue. I hope there will be further engagement with the unions.

Senator Lorraine Higgins proposed an amendment to the Order of Business that No. 13 be taken before No. 1 to give permission to publish the Bill. I certainly have no problem accepting the amendment.

Senator Terry Brennan referred to the increase in tourist figures. They have been astounding in the past year or so. He also referred to the efforts to attract more tourists from Australia. The Minister for Transport, Sport and Tourism, Fáilte Ireland and everybody involved should be complimented on their efforts. They are doing a great job and long may it continue because their efforts are of tremendous benefit to the economy and the country.

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