Michael Bell
Ceist:31 Mr. Bell asked the Minister for Finance the progress, if any, made by the departmental group set up by him to examine issues relating to the banking sector; and if he will make a statement on the matter. [5244/00]
Other Questions. - Banking Sector.
As the Deputy will be aware, last November I announced my intention to carry out a review of the strategic issues facing the banking sector. I set up a working group compris ing officials of my Department and representatives of the Central Bank and I have invited the industry to let me have its views. Some submissions have been received and others are awaited. The group is proceeding with consideration of the issues. I hope to have the report of the working group as soon as possible.
Where does the Minister think the working group is going and what he is looking for from the report? The Minister does not need me to tell him that I think it arose out of concern about competition policy and the ownership of Irish banks. That concern will be enhanced because of the low share price of some of the financial institutions. What is the Minister looking for from the working group report?
The Deputy has tumbled to what I hope to have addressed by the working group. In five or six years' time some Minister for Finance could say all the Irish financial institutions are owned by banks in Germany, Italy, etc. and ask how we allowed that happen and wonder if it was a good thing. I have thought for some time that we should do some thinking about all these aspects of the banking sector. The Irish banks are large in an Irish context but small in a European or worldwide context. Some of the issues referred to by the Deputy should be addressed at this stage and we and the banks should at least look at them. I hope the working group will report in the near future. We have received some submissions but are awaiting others. The report, which will be published, will allow for a wider debate. In this way we will all have full knowledge of the situation. As the Deputy said the share prices in some of the financial institutions have fallen for many reasons. It is important that the review group looks at the whole range of issues and then let us have a wider debate.
Did the Minister set out terms of reference for the review group? Given that he has failed to sell off the ICC, ACC and TSB, is the review group specifically empowered to make recommendations on the future of these institutions?
I do not have the actual terms of reference in my reply but I can have them forwarded to the Deputy. I have not asked the review group to look at the ACC, ICC or TSB.