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Dukes: Cost of Anglo to taxpayer E25bn

Wednesday, October 31 12:09:16

The taxpayer will be faced with a final bill for the Anglo Irish Bank disaster of closer to E25 billion rather than the E30 billion to E34 billion cost originally estimated, IBRC chairman, Alan dukes told a Dail Committee today.

He told the Joint Oireachtas Finance Committee that impaired loans on the bank's balance sheet amounted to E18 billion with cumulative impairment provisions of almost E11 billion.

Impaired loans account for approximately 66pc of the bank's total balance.

Alan Dukes also told the committee that staff numbers at IBRC had been reduced to 50pc of peak staffing levels in 2008.

By the end of the year, core staff levels will be below 800, he said.

Almost a quarter of staff at IBRC were on short term contracts and the number is increasing.

Alan Dukes said the final bill for Anglo will depend on property markets not deteriorating any further, adding that if the maturity or the rate of interest on the promissory note is changed it could affect the amount of income that IBRC receives.

He said IBRC owes E43 billion to the Central Bank which is paid back by the bank selling assets.

Deputy Michael McGrath asked if the bank could reassure the committee that culture has moved away from old Anglo and Irish Nationwide. He asked about text messages sent to developer Paddy McKillen by IBRC chief executive Mike Aynsley which informed the developer of decisions made by the board of the bank.

Mr Aynsley said that there was nothing untoward in the decision to inform McKillen of decision of the board.

My Aynsley said: "Mr McKillen doesn't do email and I sent him a text." He added there was a "well structured governance process" about communicating with clients.

Mr Aynsley said there was still client entrainment in certain circumstances. There is a full policy covering that area. He added there was no participation in flying in jets in staying in people's personal homes as has been alleged in anonymous notes circulated to politicians and journalists.