Seymour Crawford
Ceist:13 Mr. Crawford asked the Minister for Finance if he will outline his plans for a restructuring of the TSB; and if he will make a statement on the matter. [27978/00]
Ceisteanna – Questions. Priority Questions. - Restructuring of TSB.
The trustees of the TSB indicated to me earlier this year that they wished to explore the options for a sale or strategic partnership for the TSB. On 28 March the trustees announced, with my full support, that they were inviting proposals in relation to the future of the bank. In pursuit of this, I understand they have carried out a process with interested counterparts and they are currently finalising the outcome of this process.
I will give any formal request to approve new arrangements my full consideration upon receipt and then bring it to the Government. An order under section 57 of the Trustee Savings Bank Act, 1989, which would have to be approved by each House of the Oireachtas, will be required to authorise any reorganisation of the TSB. In addition, the necessary legislation has been prepared to allow for the sale of the TSB and the establishment of an ESOP for the employees of the bank. Subject to receiving a formal request from the trustees for the reorganisation of the bank and to Government approval of their proposal, I intend to publish the Trustee Savings Bank (Amendment) Bill.
Will that Bill be published before Christmas?
I am reluctant to comment until I get a formal request from the trustees of the bank. While noting that the TSB is not a State bank in the same way as the ACC and the ICC are, it is an unusual legal entity because the State has a double veto. My predecessor and his predecessor thought they had dealt with each of these at a particular time. I am loathe to comment until I get a formal request and proposal from the Trustee Savings Bank. I assure the Deputy that if I do and I and the Government agree to it, there will be no delay.
I thank the Minister for authorising his officials to keep me briefed. I will not press the Minister further on this or on the other two matters.
I acknowledge that the Minister's official has kept me briefed on what is happening. When we were working towards the flotation of Newbank earlier this year the Minister indicated he would consider making a certain number of the shares available to deposit holders in the TSB. Does the Minister envisage, in the context of any potential sale, preferential treatment being given to deposit holders? Will there be a sweetener for deposit holders?
I did not give a commitment to give free shares to anyone. I said that in terms of Newbank consideration might be given to full and fair value being given to the State. I did not say policy holders would get free shares.
The Minister said he would set aside a certain number of shares which could be sold at full and free value to shareholders.
What happened in terms of Newbank, which was an amalgamation of the ACC and the ICC and was a totally different proposition, may be contemplated in the case of the TSB.
Is the Minister contemplating any sweeteners in the current context?
No.