Vol. 453 No. 4
7 Mr. McCreevy asked the Minister for Finance the status of his plans with regard to the TSB, the ACC and ICC; and when he expects to be in a position to put forward his plans on the third banking force to Government. [9412/95]
(Limerick East): Work on the third banking force is progressing. The Minister hopes to be in a position to bring firm proposals to Government within the next few weeks.
That is similar to a reply the Minister gave some time ago in this House. Will there be Cabinet consensus, given the proposal in the banking document of the Democratic Left that the TSB should be retained under State control, because that document is at odds with what the Minister for Finance said on a number of occasions since he became Minister in December?
(Limerick East): The commitment to the promotion of a vigorous third banking force has the support of the three parties in Government, and when the Minister brings his proposal forward, the Government will decide on the basis of the options put before it.
Will the proposal also cover the ACC and the ICC? How long will this take, because it has gone on long enough having been approximately 12 momths in gestation? One could take a longer view and say it has been in gestation since the 1992 general election. Much time and effort has been expended, and there is considerable disquiet among the employees of many of those organisations because matters have been left incomplete. Can we expect a decision on these matters before or after the summer recess?
(Limerick East): Consideration has for some time been given to the concept of a third banking force. The ACC, TSB and ICC are the banks normally mentioned in this context. There is no policy vacuum. These are thriving financial institutions, and all are profitable. For example, last year ICC set up an investment bank and raised substantial investments for the first time without the umbrella of a State guarantee. These banks are profitable, working independently and playing a very important role in the economy. The Minister intends bringing proposals to Government in the next few weeks. I cannot tie the Minister to the kind of deadline Deputy McCreevy asks, but I understand matters will proceed.
