Michael McGrath (Cork South Central, Fianna Fail)
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176. To ask the Minister for Finance if his Department has been in contact with the UK Treasury in relation to the UK government’s review of Ulster Bank’s parent company, Royal Bank of Scotland; if so, the position of the Irish Government on the issue; and if he will make a statement on the matter. [36684/13]

Michael Noonan (Limerick City, Fine Gael)
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In his Mansion House speech of 19 June 2013, the UK Chancellor of the Exchequer announced a review of Royal Bank of Scotland. The purpose of the review is to assess the merits of creating a “bad bank” for some RBS assets and it is due to conclude in the autumn of 2013. The Chancellor made some references to Ulster Bank in the context of the future orientation of RBS in dealing with the future of the two UK banks in which the British Exchequer has a significant shareholding. Last Friday, the UK Treasury announced the appointment of BlackRock Solutions as asset specialist advisor to the review. BlackRock Solutions will work alongside Rothschild and Slaughter & May, the respective corporate finance and legal advisors.

The Deputy may be aware that RBS held an Investor Roundtable on Ulster Bank in London on 2 July 2013 during which Ulster Bank set out its business strategy and the macro-economic environment for Ireland. Ulster Bank described itself as the number three player in the Republic of Ireland with 1.3m customers- 1.26 m Retail and 80,000 Corporate. It informed investors that it has a clear strategy to create a ‘Really Good Bank’ whilst tackling legacy issues; it intends to deliver a smaller, lower cost and profitable bank. Ulster Bank confirmed that it is ‘cautiously optimistic’ about the Irish market. Data published at the end of June show that, having returned to growth in 2011, Ireland achieved a second successive year of growth in 2012, with GDP expanding modestly by 0.2 per cent. Ulster Bank is correct in seeing that Ireland is a place where the banking sector can expect to achieve returns which are acceptable to investors.

The recent successful launch by BlueBay Asset Management LLP (BlueBay) and the National Pensions Reserve Fund (NPRF) of a new vehicle that will provide loans to larger SMEs and mid-sized businesses in Ireland also shows that positive sentiment has returned. The new vehicle has raised the full target amount of €450 million (including an NPRF commitment of €200 million) and has launched within the expected timescale. The very significant level of investment from third-party institutional investors is at the upper end of the range anticipated by BlueBay and the NPRF.

Normal ongoing engagement between my officials and their UK counterparts now includes the possible implications of the review for Ulster Bank and any assistance that the Treasury requires with the review will be provided as part of this engagement.

Michael McGrath (Cork South Central, Fianna Fail)
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177. To ask the Minister for Finance the number of rent receivers appointed by each of the State supported banks to date in 2013; and if he will make a statement on the matter. [36686/13]

Michael Noonan (Limerick City, Fine Gael)
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I can inform the Deputy that under the terms of the Relationship Frameworks that govern the relationship between the Minister for Finance and the State supported banks', the Board and Management team retain responsibility and authority for determining the banks' strategies and commercial policies and conducting their day-to-day operations. The appointment of rent receivers to properties is a day-to-day operational decision for the Boards and Management teams of the covered institutions. The covered institutions have provided me with the following details regarding their use of rent receivers.

PTSB

- Permanent tsb has appointed 3 Receivers of Rent (Receiver) year to date in respect of Buy-to-Let (BTL) properties.

- 74 BTL properties (on 52 accounts) have been affected by this appointment year to date.

- The bank's Receiver Strategy for its BTL portfolio is centred on a case by case analysis. Appointments are made where it is deemed to be the most appropriate outcome for both the customer and the bank. The appointment of a Receiver is currently pending on 3 BTL properties (3 accounts).

- A Receiver is appointed by the bank and operates as an agent of the borrower, assuming the role of property landlord in many respects. The Receiver collects rent from the tenant(s) and passes it to the bank, together with attending to any property related issues the tenant may have (in accordance with the Lease Agreement). The appointment of a Receiver should not negatively impact the tenant(s) as the Receiver effectively steps into the shoes of the landlord. The appointment is more likely than not to benefit a tenant as maintenance issues/concerns are more likely to be attended to in a timely manner.

AIB

In the year to date 2013, the number of rent receivers appointed by AIB in respect of buy-to-let properties is in the low single digits. The number of properties affected by these appointments is not tracked as rent receivers are appointed at a customer level rather than on a property basis.

BOI

In our 2012 Annual Report we disclosed a number of 1,100 rent receiver cases. This included formal appointments in place and appointments pending at end December 2012. We will give a market update on numbers at the time of release of our interims.

The receiver notifies the tenant of their appointment and requirement to pay rent to the receiver.

- Any issues relating to the property, e.g. repairs will be dealt with by the receiver.

- The tenant is not required to leave the property unless the minimum notice period based on their rights as tenants has been provided.

- The main impact on a tenant is that they pay their rent to the receiver and not to the landlord. The receiver will write to them to make that clear. In general the rights of the tenant under his or her lease and under legislation are not affected.