Breeda Moynihan-Cronin
Ceist:36 Mrs. B. Moynihan-Cronin asked the Minister for Finance the Government's plans for the future of the ACC and TSB; and if he will make a statement on the matter. [9353/00]
Written Answers. - State Banking Sector.
On 18 January last, I reluctantly accepted the joint recommendation of the boards of ACC Bank, TSB Bank and the non-statutory board set up to oversee the merger and flotation that the process should not proceed. I reiterated my view to the board of ACC Bank and the trustees of TSB Bank that the status quo of both organisations could not continue and I asked each bank to urgently review its position with a view to bringing forward proposals for the future that address the need for change in order to face the increasing competitive marketplace. I also told them that that a change in the ownership structure is vitally important to secure the long-term interests of each bank.
In the case of ACC Bank, the proposals of the board are awaited.
The trustees of TSB Bank announced last Tuesday, 28 March that they were inviting proposals in relation to the future of the bank. When this process is completed, I would expect to receive a formal request from the trustees to approve new arrangements. An order under section 57 of the Trustee Savings Bank Act, 1989, which would have to be approved by each House of the Oireachtas, would be required to authorise any re-organisation of the TSB.