Jim Mitchell
Ceist:61 Mr. J. Mitchell asked the Minister for Finance the current position in relation to a third banking force; the policy objective of the Government in respect of this matter; and the alternatives, if any, that exist. [11234/96]
Written Answers. - Third Banking Force.
This Government is committed to the creation of vibrant and competitive markets in every sphere of economic activity with the aim of promoting economic development in Ireland. The concept of a third banking force is not just about the creation of another banking entity, rather, it is about the construction of a framework which of itself supports and encourages a competitive banking market, and, within the context of this framework, to identify the role which the State banks and the TSB, with An Post and the credit unions, can play.
The Government has been making steady progress on the creation of such a framework. In this regard, a Credit Union Bill which will broaden the range of services which credit unions can offer is being drafted. Moreover, the Competition (Amendment) Bill, 1994, which is going through the House, will strengthen the role of the Competition Authority by giving it enforcement powers and will provide for heavy fines for those found to be engaging in unfair competition.
Within this framework there are a number of options for restructuring the State banks, including sale and possibilities for mergers and strategic alliances. Each of these options would have varying impacts on competition, employment and the delivery of cost-effective, customer-based services.
The various options are being 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. This is a complex and difficult issue. We will only have one chance to get it right, and getting it right must, therefore, be given priority.