Vol. 503 No. 3
85 Mr. McDowell asked the Minister for Finance if his attention has been drawn to indications that trade unions in ACC are unhappy with progress made in preparing ACC and TSB for merger; and if he will make a statement on the matter. [10208/99]
As I have previously stated in a reply to an earlier question today, the Government has decided to support the merger and flotation of ACC Bank and TSB. The Government has also decided in principle in favour of an employee share ownership trust on the basis of up to 5 per cent of the shares of the merged bank being available in return for productivity enhancement and flexibility and a further 9.9 per cent at a cost equiv alent to a valuation of ACC Bank's and TSB's existing operations.
I have since moved, on a non statutory basis, to appoint a board for the new bank so that planning for the merger may begin. It is my intention that Mr. Matthew Barrett, chairperson of that board, will be appointed to the board of ACC Bank at its forthcoming AGM and the board of trustees of TSB have also agreed to appoint him to their board. Mr. Harry Lorton, chief executive-designate of the new bank and chief executive of TSB has also been appointed to the board of ACC Bank.
I have also decided to appoint Mr. Padraic O'Connor, who is a member of the non-statutory board, to be the next chairperson of ACC Bank. In addition I have advertised for advisers to assist me in relation to the merger/flotation process and I expect to be in a position to appoint advisers before the end of May.
Furthermore, I understand that planning between the two banks for establishing a management structure for the merger process is progressing well and internal partnership arrangements are being developed to involve staff and unions fully in the process.
As Deputies can see, significant steps have been taken to push this merger/flotation process
forward. I am aware that issues have arisen between management and the ACC Bank unions.
I would hope that, with a positive attitude from both sides, these problems can be resolved.
