Vol. 423 No. 8
90 Mr. Garland asked the Minister for Finance the reason for the sale of the ACC Bank when there is an urgent need for a State Bank to help small businesses who cannot normally obtain finance, either by way of overdraft or by loans because they do not have security; and whether this planned sale is a short-term measure to bring in finance to assist the budget deficit.
As the Deputy is aware, the Government has agreed in principle to offer ACC Bank plc for sale, and arrangements for establishing the degree of interest in the bank by prospective purchasers are now in train. The Government's view for some time now is that there is no sustainable reason for continued State involvement in the banking sector as ACC Bank now operates on strictly commercial criteria. Moreover, the bank will soon come under the supervision of the Central Bank in respect of certain prudential banking regulations, and thus will be treated in the same manner as all other commercial banks. The planned sale of ACC Bank plc is not being undertaken as a short term measure solely for the purpose of assisting Exchequer financing.
