I propose to take Questions Nos. 16, 32, 44 and 48 together.
Recent developments in the domestic and EU banking sectors, both in terms of competition and the regulatory environment, mean the State's policy in banking no longer requires it to be directly involved in the sector in an ownership capacity. Moreover, given the impact which EMU will have in terms of increasing competition within the sector, the status quo with regard to State ownership is not an option for ACC and ICC banks in the long-term. It was against this background that the Government authorised me to enter into discussions with the boards, management and staff of these banks regarding their future including, in principle, the option of disposing of up to 100 per cent of the State's interest in the banks. In setting out this position to the boards, management and staff unions, I also explained that any process for the disposal of the State's interest must be open, transparent and non-discriminatory.
Following my initial meetings with the stakeholders in both banks in December, I received submissions from them and I hope shortly to discuss these submissions with them. These submissions represent a valuable contribution to the process in which we are now engaged. While there is much common ground between the parties, there are clear differences regarding the preferred option of each.
To date, I have approached this matter in an open and inclusive way, engaging with the board, management and staff unions in each of the banks on the issues. I appreciate the constructive response I have received to date and I hope that, with continuing good will and a clear appreciation for the issues concerning each of the parties involved, we can make good progress.
In relation to the specific proposal regarding a merger of ACC Bank and TSB Bank, I have not received any proposal from the trustees of TSB, which would be the first step in any restructuring involving that bank. Neither have I any indication that such a proposal is likely. From previous questions I have answered in this House, Deputies will be aware that, under the Trustee Savings Banks Act, 1989, it is the trustees alone who initiate a change in the status of the TSB and that I can only authorise a proposal coming from them subject to the prior approval of both Houses of the Oireachtas.