Dáil Éireann debate -
Tuesday, 23 May 2000

Vol. 519 No. 5

Written Answers. - State Banking Sector.

Liz McManus

Question:

52 Ms McManus asked the Minister for Finance if his attention has been drawn to proposals before the ACC bank which centre on cost reductions through closure of branches and the scaling down of current account business and mortgage services; the views, if any, he has on these proposals; and if he will make a statement on the matter. [14284/00]

John Browne

Question:

53 Mr. Browne (Carlow-Kilkenny) asked the Minister for Finance his current position on the restructuring of the ACC, the ICC and the Trustee Savings Bank; and if he will make a statement on the matter. [14230/00]

Emmet Stagg

Question:

69 Mr. Stagg asked the Minister for Finance the Government's plans for the future of the ACC and TSB banks; and if he will make a statement on the matter. [14264/00]

Minister for Finance (Mr. McCreevy):

I propose to take Questions Nos. 52, 53 and 69 together.

After the withdrawal of ICC from the sale process and the failure of the merger and flotation of ACC and TSB, I made it clear to all concerned that the status quo could not continue and that it was more important than ever that each organisation address the need for change in order to face the increasingly competitive marketplace. I am still of the view that a change in the ownership structure is vitally important to secure the long-term interests of each bank and I asked each of them in January to review their position with a view to bringing forward proposals for the future.

On ACC, I received a copy of its strategic plan for the future development of the bank, which the board has endorsed. I have informed the board of ACC Bank through the chairman that it will have my full support in preparing to meet the challenges of an increasingly competitive marketplace. ICC intends to submit its proposals regarding its future to me in June and I will consider them upon receipt.

Taking any strategy forward will, of course, require in all of the banks the close co-operation of management and staff, and I am sure that this will be forthcoming through the partnership process.

The trustees of TSB Bank, with my full support, announced on the 28 March that they were inviting proposals on the future of the bank. When this process is completed, I would expect to receive a formal request from the trustees to approve new arrangements. An order under section 57 of the Trustee Savings Bank Act, 1989, which would have to be approved by each House of the Oireachtas, would be required to authorise any reorganisation of the TSB.