Charlie McCreevy
Ceist:17 Mr. McCreevy asked the Minister for Finance the proposals, if any, he has with regard to the third banking force; and if a decision will be made in 1995. [4409/95]
Ceisteanna — Questions. Oral Answers. - Third Banking Force.
Ivor Callely
Ceist:22 Mr. Callely asked the Minister for Finance the timescale and the structure of the proposed third banking force; and if he will make a statement on the matter. [4237/95]
Kathleen Lynch
Ceist:42 Kathleen Lynch asked the Minister for Finance his proposals, if any, with regard to the promotion of a vigorous third banking force; and if he will make a statement on the matter. [4382/95]
I propose to take Questions Nos. 17, 22 and 42 together.
A comprehensive review of the options open to the Government in relation to the State banks, including TSB Bank, is nearing completion and I intend to put proposals arising out of this examination to the Government shortly. The House will appreciate that the Government is not long in office and that the importance of the issues involved necessitates care in how we proceed. I assure the House, however, of my determination to advance matters as quickly as possible.
The timetable for giving effect to the decision of Government will depend on the option chosen. Under most scenarios legislation will be required and this legislation could be lengthy and complex.Difficult commercial negotiations could also be required.
Until the Government has had the opportunity to consider my proposals, it would be premature to discuss the structure which may emerge. However, to the extent that the Government may decide that the best way forward for any of the banks concerned involves taking an equity stake by a private commercial entity, this will be done by way of an open competitive process.
Should the State retain an equity stake in any new venture, if that is what is decided eventually, or does the Minister believe that the market should be left to dictate its own wishes in that regard?
A commitment was given by the previous Government and repeated in the Programme for Government.I do not wish to offer a view until I have completed the examination. At that stage the Deputy will be able to consider the views of the Government.
If the Minister does not wish to express his view will he express the view of his party?
The view of the Labour Party is well known. It is committed to and respects the role played by the State banks in the past. The recent success of both the ICC and the ACC — their annual reports were published recently — bears testimony not only to their profitability but also to their importance in the economy.
Given the current state of the economy and having regard to the emphasis placed by successive Governments on the potential of small business for growth in employment, does the Minister think it important that the State should retain an equity stake in any new venture?
I agree with the Deputy that the State has a positive role to play in the banking sector. Our experience and that of other European Union countries would seem to bear this out.
Is that the Minister's view?