Pat Rabbitte
Ceist:14 Mr. Rabbitte asked the Minister for Finance his plans for the future of the ACC Bank; and if he will make a statement on the matter. [28007/00]
Ceisteanna – Questions. Priority Questions. - ACC Bank.
As I have stated on previous occasions, following the abandonment of the ACC-TSB merger-flotation process, I made it clear to all concerned in the ACC Bank that the status quo could not continue and that it was more important than ever that the bank addresses the need for change in order to face the increasingly competitive marketplace. I still believe that a change in the ownership structure is vitally important to secure the long-term interests of the ACC Bank. I have asked the board to review its position with a view to bringing forward proposals for the future.
In the meantime, the board has endorsed a strategic plan for the future development of the bank and I have received details of this. I have informed the ACC Bank through the chairman that it will have my full support in preparing to meet the challenges of an increasingly competi tive marketplace and in preparing the bank for a change in ownership. I expect to receive a business plan from the bank early in the new year. Legislation is currently being prepared which will include provisions to establish an ESOP for the staff of the ACC Bank, an increase in share capital if required and also enabling provisions which will allow for the sale of the bank in the future. It is intended to publish the Bill early next year.
Will the Minister confirm or deny press reports that he wrote to the ACC in December indicating that he considered that some of its lending and tax compliance practices were unacceptable? If so, will he indicate if he got a response from the bank?
I did not see press reports but I confirmed in a reply to a parliamentary question that I wrote to the chairman of the ACC expressing my disquiet at the practice uncovered at the DIRT inquiry. I also set up a number of things and I put in place a number of changes. The chairman of the ACC Bank, for example, will report to me each quarter and the executives will have more regular contact with my Department. This also applies to the ICC. I wrote to the chairman of the ACC Bank expressing my disquiet that a State-run bank was doing things which were illegal. Banks should not be involved in anything illegal but it was a bit much for a State-run bank to operate in that fashion.