Question:
68 Dr. Upton asked the Minister for Finance the Governments plans for the future of the ACC Bank; and if he will make a statement on the matter. [9754/01]
Written Answers. - ACC Bank.
Earlier this year, in a press release announcing the publication of the ACC Bank Bill, 2001, I stated that the board of ACC Bank had been mandated to prepare the bank for sale, to pursue all options in relation to a change in the ownership structure of the bank and to initiate appropriate contacts with potential parties. The board has since appointed NCB Corporate Finance, in conjunction with their legal advisers, Matheson Ormsby Prentice, to assist them in this process. I recently appointed A&L Goodbody to provide me with legal advice in relation to the ACC sale process.
As the Deputy will be aware, the Second Stage of the ACC Bank Bill, 2001, took place on 28 March 2001. The Bill provides for an increase in the authorised share capital of the bank. The current limit on Exchequer investment in the bank is £50 million and I propose to increase the authorised share capital to £100 million. This will enable me to subscribe for additional equity share capital should this become necessary to meet ongoing business needs as long as it remains in State ownership. The Bill also includes enabling provisions in relation to the sale of the bank and the establishment of an ESOP for the staff of the bank in line with State guidelines. The terms of the Bill also require me to secure a motion of approval from the Dáil prior to making any disposal of shares, other than to the ESOP or a director of the bank. I hope to see a change in the ownership structure of the bank over the course of the next year.