Michael Noonan
Ceist:59 Mr. Noonan asked the Minister for Finance if the industrial relations problems at ACC are inhibiting progress on the proposed merger and flotation of ACC and TSB; and if he will make a statement on the matter. [10035/99]
Priority Questions. - ACC-TSB Merger.
As I have advised the House previously, 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 equivalent 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 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 has also agreed to appoint him to its 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. Pádraic 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 and 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 and flotation process forward. I am aware that issues have arisen between management and ACC Bank unions. I would hope that, with a positive attitude from both sides, these problems can be resolved.
The thrust of the question was about industrial relations problems in ACC Bank but the Minister's reply only referred to these problems in passing in the last sentence. Will the Minister state what he is doing to resolve the industrial relations problems in ACC Bank, which are now casting a shadow over the merger proposals?
There are problems about one issue which arose recently concerning the new system which would adopt computerisation for the merged entity. The idea of the merger and flotation came from the unions initially. When I commenced this process I gave an undertaking to the unions that there would be no forced redundancies and there will not be.
Issues relating to ongoing negotiations, however, are a matter between the board and management of the individual banks and the individual members. It is not my intention to involve myself in matters which are within the remit of normal procedures between management and members. That is my position.
Is the Minister of the view that it is not too late for second thoughts by any of the unions representing the employees, or by the employees, in ACC Bank? Are the proposals for the merger set in stone, rolling on to the dates the Minister has mind?
The unions have displayed a positive attitude to the process. The present difficulty between the management and the unions can be resolved by them. Trade union leaders and their constituents have shown a positive attitude to the merger and flotation. The process has been set up and much consultation has taken place since I became Minister for Finance. Hopefully, we will see the end result in the middle of next year. I am as positive as I was some months ago about the outcome. These little difficulties should be resolved through the normal industrial relations machinery of the board and management of the bank and its members.
Has the Minister reflected on the issue of share options being given to deposit hold ers? From previous answers, I understand that the Minister's position is that a tranche of shares will be set aside for deposit holders which will be offered for purchase at the offer price. Has the Minister reconsidered that position with a view to offering these shares at a discount?
I have dealt with this issue before and my position remains the same. I am giving consideration to the allocation of a tranche of shares in the new entity which will be offered to existing customers at the offer price.