Ceist:
6 Mr. Ryan asked the Minister for Finance the progress, if any, made in carrying out the Government's decision to effect a merger of the TSB and ACC Bank; and if he will make a statement on the matter. [16138/99]
Other Questions. - TSB and ACC Bank Merger.
As I informed the House previously, I have established a non-statutory board for Newbank, chaired by Mr. Matthew Barrett, chairman of the Bank of Montreal. There are ten other members on the board, including the two joint managing directors of the process, Mr. Lorton of the TSB and Mr. McCloskey of ACC Bank and four non-executive members nominated by the TSB and four nominated by me. I understand the board has appointed its financial advisers.
I have also established a board-shareholder steering commitee comprising of representatives of the non-statutory board and officials of my Department. This committee is responsible for overseeing the detail of the merger-flotation process. I have also appointed my own financial and legal advisers who have begun work on the various legal, regulatory and business issues arising.
I expect negotiations between the joint representatives of the staff of ACC Bank and the TSB, the management and my Department on the terms and conditions of an ESOP will get under way shortly. I have informed the board of Newbank that I would like the merger plans and the ESOP agreement in place within the next few months. The target for the flotation is that it should take place before the middle of the year 2000.
Has the Minister appointed the lead brokers to deal with the flotation and merger?
No. I have appointed financial and legal advisers but it will be some time before we reach the flotation process. Flotation will take place before the middle of next year.
Has the Minister invited tenders?
No. We have a long way to go before we reach that stage.
My reading of the Minister's response to the question on 26 May was that an advertisement for the appointment of financial and legal advisers and lead brokers had been placed in the Official Journal of the European Communities.
I have appointed financial and legal advisers—
I understand that but did the Minister not advertise for brokers?
Telecom Éireann appointed advisers some time before appointing brokers to deal with the stock market flotation. We may have to do the same in this instance. There would be nothing to stop those who have been appointed from taking on that responsibility also.
Will legislation be necessary to give effect to the Government's proposals?
While all matters are being considered, legislation will be necessary in some areas. There will be adequate time to consider it before the flotation takes place in the year 2000.