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From top: A clip from last night’s RTE documentary The Great Irish Sell Off in which Minister for Finance Michael Noonan is recalled talking about vulture funds; Joan Burton questions Mr Noonan last June

Further to last night’s documentary, The Great Irish Sell Off…

Minister for Finance Michael Noonan was recalled talking about vulture funds at an oireachtas committee on housing and homelessness – in May 2016.

In response to a question from Anti-Austerity Alliance TD Ruth Coppinger, Mr Noonan said:

“You criticise me for not intervening with vulture funds. Well, it was a compliment when they were so dubbed in America because vultures, you know, carry out a very good service in the ecology. They clean up dead animals that are littered across the landscape.”

Then, in June, 2016…

…Mr Noonan faced questioning in the Dáil from the former Labour Party leader Joan Burton.

Joan Burton: “Has the Minister met with the purchasers of these loans, the vulture funds and hedge funds? By and large, they bought with the idea of flipping these loans within a relatively short period of three to five years.”

“We are now at a stage where, as the Minister said, we are reducing the number of distressed mortgages, but those left in distress are probably much worse cases and many have not engaged with the process.”

“Has the Minister directly met these funds? On various international trips he has occasion to meet some of these organisations or people connected with them, but has he met them in Ireland and talked about our society and how difficult the final work-out is? Many people who have not engaged are in deep difficulty and are likely to go under financially unless a structure is put in place to help them.”

Michael Noonan: “I meet various investors from time to time, at home and abroad, at their request. I cannot recall specifically meeting any of the investor companies that would generally be described as vulture funds, but if the Deputy tables a specific question I will have it researched within the records of the Department and give the Deputy a full answer.”

Then, in September, 2016…

… People Before Profit TD Richard Boyd Barrett asked Mr Noonan a similar question:

Richard Boyd Barrett: ‘Will the Minister provide details of meetings held between his Department officials and vulture funds during his terms as Minister for Finance; if he or his officials suggested to these funds that they might benefit from tax loopholes such as section 110 of the Taxes Consolidation Act or any other tax loopholes for the purposes of minimising their tax contributions; and if he will make a statement on the matter.

Michael Noonan: “While the term vulture fund is not recognised in the Taxes Acts, a small number of structures that have been using section 110 TCA 1997 to avoid paying tax on Irish property transactions have been brought to my attention.  To address these concerns, on 06 September, I published a proposed amendment which tackles any misuse of the current section 110 regime in relation to Irish property. Details may be found in my press release on my Department’s website regarding Section 110s.  The amendment as published is not finalised and may be subject to further refinements to clarify certain aspects of the provision.”

“In the context of the State’s interests in Nama, IBRC, the banks and other financial institutions, my officials would have met with representatives of companies that would have been involved in bidding for and purchasing loan books.  However, at no stage would my officials have been in a position to suggest any mechanisms regarding the minimisation of tax.”

“The rationale for publishing said proposal was to ensure appropriate feedback is received on a technical and complex section of the Taxes Acts.  As is standard practice when a technically complex piece of legislation is being examined, officials from the Department of Finance and the Revenue Commissioners have held meetings with a broad range of stakeholders including meeting with members of the Irish Debt Securities Association, the body that represents the securitisation industry and other members of the accounting, law and tax professions.  My officials are currently in consultation to clarify certain aspects of the provision and to ensure the proposal successfully carries out the intention for which it was created. This is an ongoing process and I would like to reiterate that we welcome input from all stakeholders, including Deputies, on the matter.”

There you go now.

Earlier: Stranded

‘Judgements In Favour Of Vulture Funds Will Explode In 2017’

Transcripts via Kildarestreet.com

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This afternoon.

Leinster House, Dublin 2

Sinn Fein TDs, including Mary Lou McDonald and Pearse Doherty, address reporters about the surprise resignation of Martin McGuinness and the forthcoming Northern Ireland Assembly election.

Mr McGuinness resigned in protest at the Democratic Unionist Party’s handling of a botched renewable energy scheme.

Arlene Foster says she is open for discussions with Sinn Féin (Irish Times)

Meanwhile…

Yesterday: Martin McGuinness Resigns

garry

Mad for Manc poetry?

Read on.

Sandy writes:

Something for your readers. Next Tuesday, Mancunian writer and poet Mike Garry will be appearing in the Workman’s Club [Wellington Quay, Dublin 2] for a free show, with support from Bohemians poet-in-residence Lewis Kenny.

An evening of Poetry from Mike Garry (Workman’s Club)

cyber

 

Diarmuid Hayes writes:

You might like this short animation about the secret lives of laptops that won the judges prize at the Firehouse Film Contest [Dublin-based competition for new short films]  on Sunday…

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The Strand apartment complex in Limerick city

This morning.

RTÉ journalist Brian O’Connell reported on Today with Sean O’Rourke that the tenants of up to 70 apartments in the Strand apartment complex in Limerick could be facing eviction.

He explained:

The Strand apartment complex – which includes upwards of 200 apartments and the Limerick Strand Hotel – was built in Limerick in 2007 by Galway developer John Lally’s Lalco Holdings.

In 2014, the hotel was sold to US billionaire John Malone.

At some point, the debts related to the apartments went into Nama.

Nama, in turn, sold the debt on to US vulture fund Oaktree.

Oaktree has now directed Sova, a subsidiary of Lalco Holdings, to sell the properties to repay the debt.

Because of this, according local Anti-Austerity Alliance Councillor Cian Prendiville, the tenants of 30 apartments in the complex have already been effectively “forced out” while the tenants of up to 70 more apartments may face eviction.

Brian O’Connell spoke to several tenants for his report, including a woman who has been living there for nine years.

In addition, he explained:

“It turns out that the loans attached to the development, as I said, went into Nama. Now, at some stage, Nama sold these loans or this debt onto Oaktree. They’re a US-based capital fund vehicle or so-called vulture fund as we’ve come to know them.

“Sova which is a subsidiary of the original developers [Lalco Holdings], they gave me a comment and they told me that the debt secured against the properties was sold by Nama to Oaktree and it’s Oaktree that have now directed that Sova have to sell the properties to repay the debts.

“Sova, they say, maintains ongoing communication with the tenants. I went back with a follow-up question because what’s all that got to do with the tenants who are in place currently. Why do they have to leave? Just because there’s been a change in ownership.

“And they said, well, ‘unless there’s specific circumstances to the contrary, Oaktree, which is the vulture fund,  their view is that the volume is maximised by sale with vacant possession’. So, in other words Sean, they realise that these apartments will make more on the open market if they’re vacant before being sold.

“I’ve heard stories in the last 24 hours, in the last batch of apartments were sold, tenants had to leave, they went back out for rent and they got €400-€500 more a month for them.

“Nama didn’t confirm to me when the loan had been sold or for how much, but a spokesperson pointed out that Nama doesn’t actually own properties and they say that Nama policy is that, where possible, debtors and receivers should avoid seeking vacant possession of residential property but, of course, if a new owner comes in, they have different policies.”

Further to this.

Mr O’Rourke later interviewed Minister for Housing Simon Coveney and asked him about the contents of Mr O’Connell’s report.

To introduce the matter, Mr O’Rourke compared the situation in Limerick to that of Tyrrelstown, Dublin 15.

Readers will recall how last year up to 200 families renting homes in the Cruise Park development in Tyrrelstown faced eviction.

Twinlite – a property company owned by developers Michael and Richard Larkin – had sent letters informing tenants in Tyrrelstown that they had to leave the properties in which they lived, after a Goldman Sachs vulture fund bought an €89million loan, secured on the homes by the Larkin brothers, from Ulster Bank.

Following publicity over what was happening in Tyrrelstown, the so-called Tyrrelstown amendment was added to the Planning and Development (Housing) and Residential Tenancies Bill 2016 before Christmas – to prevent people from being evicted in such situations.

It states that where a landlord proposes to sell 20 or more units in a development – within six months – the sales will be conditional on existing tenants being able to remain in the property unless there are exceptional circumstances.

During debates on this amendment, several politicians appealed for the number 20 to be reduced to five.

Mr O’Rourke asked Mr Coveney why this amendment is failing to protect the tenants of the Strand apartments in Limerick.

Mr Coveney said:

“First of all, we need to check whether it does or it doesn’t. But, I mean, for me, it is totally unacceptable that when one institutional investor sells to another institutional investor or one professional landlord is selling an apartment complex to another professional landlord, that people’s tenancies shouldn’t be protected through that sales process.

“That is the norm in many countries, it’s not the norm in the UK, but it’s the norm in many countries and it should be the norm here. And we have taken advice from the Attorney General to make that happen and that is why, in the rental legislation, which got a lot of controversy and coverage in the build-up to Christmas – we introduced a Tyrrelstown amendment, to make sure Tyrrelstown wouldn’t happen again.

“That legislation has now been passed and the commencement order, for the so-called Tyrrelstown amendment which ensures that, actually, when this type of sale happens that people are protected by law, to stay in their homes, as tenants who are paying their way – that amendment will be commenced next week actually. That’s my understanding.”

“… I listened to your report on the radio, before coming in, and  I’ll need more details to be able to give an accurate answer on that because...the legislation doesn’t apply retrospectively because it can’t…”

Listen to the interview with Brian O’Connell in full here

Listen to the interview with Simon Coveney in full here

Strand tenants against vulture evictions – STAVE (Facebook)

Earlier: ‘Judgements In Favour Of Vulture FUnds Will Explode In 2017’

Pic: Daft

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Lunchtime.

At Antrim Area Hospital up North.

Elly Parker’s mum receives a “dairy free salad with ham”.

Elly writes:

Thought you might like this for posting – it’s in Northern Ireland, but shows that the conditions aren’t any better up there.

Previously: Your Irish Hospital Breakfast Has Arrived

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SIPTU’s Big Start Campaign tweetz:

Early years’ educators are recognised with an activism award – please watch and share.

Big Start

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A 1955 Mercedes Benz 300SL Gullwing – once the property of its sole owner, pilot and  US Merchant Marine, Sig Noygren – it’s been in dry storage since 1976.

From the Fire Engine Red paint and red plaid upholstery, the car (with just 32,239 miles on the clock) remains in its original state aside from custom enhancements, including a chronometer, altimeter, and thermometer, as well as fog lights, an eight-track player, and a defroster fan.

Yours for around $1,000,000.

uncrate

aims-ireland

AIMS Ireland writes:

If you could change one thing about Irish maternity services, what would it be? Interested to hear from women/pregnant people and HCPs [health care providers]!

Reply on AIMS Ireland (Facebook) or at AIMS Ireland (Twitter)