Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 28 Apr 1998

Vol. 490 No. 2

Other Questions. - State Banking Sector.

Paul Connaughton

Question:

16 Mr. Connaughton asked the Minister for Finance the plans, if any, he has to change the status of ACC Bank; his views on the submission made by the ACC Bank group of unions on the future ownership of the bank; and the way in which he will proceed on this matter. [9593/98]

Liz McManus

Question:

32 Ms McManus asked the Minister for Finance the Government's proposals for the future of the ICC and ACC banks. [9879/98]

Michael D. Higgins

Question:

44 Mr. M. Higgins asked the Minister for Finance his views on the submissions received from representatives of the workforce in ACC and ICC respectively; if he has had further contact or meetings with interested parties in relation to the prospective restructuring; and whether he has sought or received a response from TSB in relation to the proposal made by or on behalf of the workforce of ACC. [9520/98]

Jim O'Keeffe

Question:

48 Mr. J. O'Keeffe asked the Minister for Finance whether a sale of all or part of the State stake in ICC and ACC will take place; if so, when and on what basis; and the proposals, if any, he has in this regard. [9539/98]

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.

What is the present state of play in respect of ACC and ICC? The Minister has been authorised to enter discussions and negotiations and to negotiate up to, in principle, a 100 per cent disposal of the companies, but where does it now stand? Has it been set aside for the moment or is it being actively pursued? Does he think he will be in a position before the end of this calendar year to bring forward proposals about the disposal of either or both of these institutions?

When I initiated these discussions I intimated I would like to have it out of the way by the end of this calendar year, but that was on the basis that we would probably have proposals from the staff side by the end of January, which was the position when I met all the stakeholders last December. That did not prove possible and it was only recently that the final proposals came from one of the institutions on the staff side. Various things held them up — they had to engage consultants and there were other difficulties. Now we have proposals from all the stakeholders — the management of both institutions and staff and trade union interests — and it should be possible to progress further. Recently I had discussions within the Department and in the next few weeks I will go back to all the stakeholders for further discussions. I hope to advance the matter considerably before the summer.

The Minister has confirmed for the first time in clear terms that he intends to dispose of the two banks — previously he spoke about all options being open but he now states that State ownership is no longer required.

A question, please.

In terms of procedures, is it open to him or the Government to decide to sell either or both State banks to a particular purchaser or is he required to put them out to public tender?

I made it clear in my reply and previously that the procedure must be open, transparent and non-discriminatory, which would get over the point of the Deputy's question — that is, after the disposal of ACC and ICC no one would be able to bring a legal case on the basis that he or she was not allowed to compete or make a proposal. Nothing will be hidden in these proposals, not that anything could be these days. The process will be open, we will have further discussions with the stakeholders now that all their proposals are on the table and advance the cause from there.

Is it fair to say, therefore, that there are only two options — either the two banks are put up for tender or they are floated? If so, it is fanciful for the staff unions to raise notions of restructuring because the Minister cannot do it.

In my meetings with the stakeholders on this matter everyone has been open about their proposals. I think we have developed a good relationship. Nothing has been ruled in or out, except for two things — first, I can dispose of up to 100 per cent of the banks, which proposal is on the table, and second, the status quo is not an option. I said that to all sides from day one in December. Within those broad parameters discussion can take place.

Must it be either by tender or floatation?

We have not got to that yet.

Written Answers follow Adjournment Debate.

Top
Share