Dáil Éireann Debate, Wednesday - 13 May 2015
84. Deputy Thomas P. Broughan asked the Minister for Finance if a cost-benefit analysis has been carried out on the merits of retaining Allied Irish Banks in the State sector, in view of the failed record of the management of this bank while in private ownership. [18870/15]
View answer85. Deputy Thomas P. Broughan asked the Minister for Finance if he will provide an update on the benefits of retaining Allied Irish Banks as a State asset, including the reported current value of the bank, and its important role in determining the net national debt of Ireland. [18871/15]
View answer86. Deputy Thomas P. Broughan asked the Minister for Finance if he will consider retaining Allied Irish Banks in public ownership, with the bank's annual profits being used to defray the national debt, and to support Irish capital infrastructure, over the coming decades. [18872/15]
View answer87. Deputy Thomas P. Broughan asked the Minister for Finance if he will consider retaining Allied Irish Banks in public ownership until a Government with a new mandate, after the coming general election, has had an opportunity to evaluate all aspects of the role and history of this bank in the Irish economy, and to avoid future controversies resulting from an early sell-off. [18873/15]
View answerI propose to take Questions Nos. 84 to 87, inclusive, together.
I have stated on numerous occasions that it is Government policy that we will not remain a holder of our banking investments in the long term. Given our high debt to GDP ratio, we do not have the luxury of holding all of these investments indefinitely and I envisage receipts from the gradual sale of these investments helping to play their part in reducing the State's overall debt burden in the coming years.
The Irish banking system is now in a much stronger position than it has been in recent years. Profits are recovering, balance sheets have been restructured and we have started the process of returning cash to the taxpayer following the huge investments that were made over the 2009-11 period.
Much of the banking-related work in the Department of Finance this year will focus on AIB. Given the scale of the State's investment some €20.8 billion and the range of options available to recoup value from the bank, officials within my department are working with AIB on reconfiguring its capital structure. Goldman Sachs International has been appointed to provide financial advice to the Department in this regard.
The focus will be on ensuring that the best decisions are made regarding potential capital restructuring options and sequencing in order to maximise the return of cash to the State from our AIB investments over time. While this is just the start of the process, it is an essential first step on the road to recovering value for the taxpayer. All options remain on the table and it is too early to specify what steps will be taken next or to put a timeline on decisions.
