Vol. 444 No. 2
22 Mr. Broughan asked the Minister for Finance the plans, if any, he has to review the management and efficiency of deposits of public bodies in the commercial banking sector such as the Collector General's account in the Bank of Ireland; and his views on whether there is a case for a third public sector force in banking to increase competition in this area.
With regard to the management and efficiency of balances held by Government Departments in commercial bank accounts, my Department keeps such accounts under continuous review. On the question of the Collector General's account in the Bank of Ireland, this account was reviewed last year and improved terms were put in place. The opening of such accounts, which are designated "public bank accounts", must be approved by the Department of Finance, as required by section 18 of the Exchequer and Audit Departments Act, 1866.
In respect of other public bodies, there are standing instructions to Departments with regard to bodies under their aegis. These instructions refer to the need for Departments to maintain proper control and accountability mechanisms in order to ensure that public bodies making deposits with financial institutions manage their assets and their banking relationships to the best advantage.
The Programme for a Partnership Government, which provides for the creation of a third banking force to increase competition in the banking sector and to cater for the specific needs of small and medium-sized enterprises, also envisages an enhanced role for such a third force in servicing part of the requirements of Government Departments, local authorities, and State enterprises.
