The Government has given the special liquidators of Irish Bank Resolution Corporation an extra four months to try and sell its €27 billion loan book.
The move has been welcomed by the Irish Bank Officials Assocation tonight. The IBOA said staff in IBRC were called in for a short briefing late this afternoon during which they were advised that the process of special liquidation would continue until the end of the year. Further information on the implications of this brief announcement is to be communicated to IBRC staff in the coming days.
"Insofar as this announcement suggests that IBRC workers will be retained in employment, IBOA The Finance Union - which represents a majority of IBRC's permanent employees - welcomes this announcement as providing a modest degree of assurance to workers in a very difficult and uncertain situation," said Union General Secretary, Larry Broderick. "However, we cannot offer a more positive response until we have more information about its precise implications for our members in IBRC. We will seek clarification on the matter next week at the earliest opportunity from the Special Liquidator and the Department of Finance.
Mr. Broderick added that the announcement did not come as a surprise to the Union because, from the outset of the process in February, the Union had pointed out that the sheer volume and complexity of the work involved in managing many billions worth of assets on behalf of the taxpayer indicated that the process of winding down the company would be no simple matter - regardless of what might be envisaged in the legislation.
"If IBRC's assets are disposed of too cheaply, the taxpayer will lose out. But if the price for these assets is set too high, they will be unsold and transferred into NAMA at the taxpayers' expense. So the liquidation process requires a great deal of careful attention in order to ensure the best outcome for the Exchequer," he said.
"At the same time, given the controversial manner in which the liquidation was initiated, we recognised that various aspects of the process could be the subject of litigation – adding yet another layer of complexity to an already complicated situation and requiring that the Special Liquidator be even more circumspect in his approach.
"So a central argument in the Union's case for a fair settlement for IBRC workers has been the need to acknowledge the pivotal role they will continue to play in the process. This requires that they remain focused on the task in hand without any unnecessary distractions about the compensation to be paid to them when the process is complete.
"That remains our objective – and recent developments have not only confirmed the strength of our arguments but also strengthened our resolve to pursue justice for the IBRC workers."
