Vol. 428 No. 2
10 Mr. Yates asked the Minister for Finance if he will clarify the nature of his discussions and those of his departmental officials with the French bank, Credit Agricole, in relation to the future of the ACC bank; whether the commitment in the Programme for a Partnership Government 1993 to 1997 to establish a merged bank between the ACC, ICC and Trustee Savings Bank is still Government policy; and if he will make a statement clarifying the future of the ACC bank.
The Programme for Government envisages the creation of a vigorous third banking force from within the State sector by merging ICC Bank and ACC Bank and by seeking a merger of the new entity with Trustee Savings Bank Bank. The programme also raises the possibility of involvement with a major international bank.
It is intended that this issue will be pursued by the Government as quickly as possible and preliminary contacts have already been made with ACC Bank and ICC Bank. The Deputy will appreciate that in-depth analyses are only at the initial stages and it will necessarily be some months yet before precise details of the plan may be formulated.
The Association of Co-operative Banks of the European Community brings together banks with origins in the agriculture sector and its members meet regularly. ACC Bank and the French Bank Credit Agricole are both members of this association. At the invitation of the board and management of ACC Bank to me as shareholder, I had a courtesy meeting with Credit Agricole during their recent visit to Ireland. Discussions were informal and ranged over a number of items of mutual interest.
I am surprised the Minister has not revealed the whole story. Will he confirm that Credit Agricole are very interested in buying a stake in ACC Bank and that ACC management are supportive of such a move? Would he agree that the management of Trustee Savings Bank, ICC and ACC think the proposal in the Programme for Government is daft and unworkable?
Not only they think that but also other people.
The question I am being asked refers to the proposals in the Programme for Government, and they are there for everyone to see. As I have said, they are at a preliminary stage. Examination of exactly what way the Government will deal with this issue in the medium term is under discussion. Credit Agricole, at a lunch I attended, briefly expressed interest in this matter, but it will be some time before it puts forward or is asked to put forward any proposals.
The Minister is not clarifying the issue. Would he agree that ACC is undercapitalised and needs to grow? Would he also confirm that Credit Agricole had discussions about taking a stake in ACC and that that would be diametrically opposed to what is in the Programme for Government? Will the Minister clarify which direction is being taken — that favoured by ACC or that favoured by the Labour Party — and which does he support in the best interests of the future of ACC? Will the Minister not cloud the issue but give a straight answer?
I will give a very straight answer. The proposal as set out in the Programme for Government will be fully examined and the Government will discuss precisely what direction it will take——
It was supposed to have been examined before it was put in the programme.
——whether ACC and ICC will be amalgamated, whether they will enter joint ventures with others or remain as they are, whether Trustee Savings Bank joins with them or remains as it is and whether An Post has a part to play are all matters under consideration.
May I ask one final question?
It must be very brief. Let us not forget the time factor involved in dealing with Priority Questions.
Is the Minister aware that the Trustee Savings Bank management, a bank which is not entirely State-owned, is totally opposed to this merger and was never consulted about the proposal from the outset?
That is correct.
The Minister's Department is also opposed to it.
Only recently I gave Trustee Savings Bank approval to amalgamate its Dublin and Cork branches, but we have had no discussions with them yet about what will happen if ACC and ICC are amalgamated.
Therefore it is a purely cosmetic exercise to keep the Labour Party happy.
I must point out that the rule governing Priority Questions is that only the Deputy who tables a question may put supplementary questions, and no other Member may intervene.
