Martin Cullen
Ceist:7 Mr. Cullen asked the Minister for Finance the proposals or plans, if any, he has regarding the third banking force; if a decision will be made in 1996; and if he will make a statement on the matter. [2551/96]
Ceisteanna—Questions. Oral Answers. - Third Banking Force.
Ivor Callely
Ceist:64 Mr. Callely asked the Minister for Finance the period of time that proposals for a third banking force have been under consideration; the likely timescale for a decision; and if he will make a statement on the matter. [2466/96]
I propose to take Questions Nos. 7 and 64 together.
The proposal to establish a third banking force was included in the programme of the previous Government, published in January 1993, and in the programme of the present Government.
The options for restructuring the State banks continue to be examined by myself and a number of Government colleagues with a view to identifying the most effective solution having regard to the nature of the individual institutions, their particular customer markets, the needs of the whole community in its broadest sense and developments in the EU.
The issue of how the State banks might be restructured in order to achieve our objective of a vibrant and competitive banking market is such a complex and difficult one that I refuse to be rushed into recommending to the Government a particular solution to it. We will only have one chance to get it right, and getting it right must, therefore, be given priority.
The Minister's answer is extremely disappointing. He must have difficulty in repeating what he has been saying in the House for the past 12 months. Would he agree that it is now highly unlikely that, in the lifetime of this Government, we will see any move on the third banking force as enunciated in its programme for Government?
I do not agree with that observation.
Has the Minister any plans to sell TSB separately, to sell 75 per cent of it, or to do anything with the ICC and the ACC? In a debate on the Adjournment some time ago the Minister spoke about the position of An Post and of the credit unions. He has said nothing of those today. If there are serious proposals by Government to create a third banking force, one would expect movement on at least some of these areas.
My reply was brief because I spoke on the issue on the Adjournment last week and also in the Seanad when I gave an up-to-date and comprehensive reply.
The Minister ran out of clichés.
I presumed the Deputy was aware of that. The answer to his question, nevertheless, is that all the issues to which he referred are under active consideration.
Fine Gael wants one thing and the Minister wants another.
Would the Minister accept that the position is becoming untenable and that the ideological difficulties within the Government are making it impossible for the Minister to deal with this very important matter? Would he agree that much concern is being expressed within the TSB, ICC and ACC about their future? Will the Minister comment on the fact that he is taking no account of the European Monetary Union implications with which a third banking force will have to cope?
I reject what the Deputy said. It is because of the complexity of the questions and, in particular, the implications of European Monetary Union and the future role of a State banking sector within European Monetary Union that we have to have regard to those factors and the fact that the legislation on credit unions has regrettably been delayed. I gave an extensive reply on this in the Seanad debate and, in a less expansive way because of time constraints, on an Adjournment Debate in the Dáil.
There is a time limit for priority questions. If we remain unduly long on any question, it must be to the detriment of other questions on the Order Paper.
The Minister would be doing a service to all concerned if he said in this House that, with about 12 months to go to the next general election, there is no possibility of a third banking force being formed and that people should get on with their business and stop looking over their shoulders at the Minister. It is grossly unfair to them.
I do not accept that advice from Deputy Cullen.
The Minister knows I am right.