Vol. 529 No. 1
483 Mr. Durkan asked the Minister for Finance the basis on which it is deemed that it is the prerogative of the Government and taxpayers to sell the Trustee Savings Bank, having particular regard to the interests of the original trustees and shareholders; and if he will make a statement on the matter. [1530/01]
I received a request from the trustees of TSB Bank on 5 December last under section 57 of the Trustee Savings Banks Act, 1989, seeking authorisation to sell the bank to the Irish Life and Permanent Group. Under the terms of this proposal, and in accordance with the legislation and legal advice, the proceeds arising from the sale will accrue to the Exchequer. I announced on 13 December that it was my intention to authorise the reorganisation and I published the Trustee Savings Banks (Amendment) Bill, 2000, which is required to facilitate the trustees' proposal. The Bill will be brought before the Dáil in this session.
The question of free shares for customers on a disposal only arises in the case of organisations such as mutual building societies, which are legally owned by their customers. This does not apply in the case of TSB or any of the State companies such as ACC and ICC Bank, where the shares are held by the State on behalf of all citizens. The proceeds from the sale of the TSB Bank will, in accordance with the law, accrue to the Exchequer, which will in turn benefit all citizens.
