Michael Noonan (Limerick City, Fine Gael)
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I spoke about this recently. We own 14% of Bank of Ireland and the policy is, in due course when we can get the best price possible, to sell it, either in one tranche or in increments. We did not tie it to any time-line and there is no pressure on us to sell bank shares to reduce our debt. It is a stand-alone decision based on when we can recover the most money for the taxpayer. There has been movement in bank share values all over the world, and particularly in Europe. Bank of Ireland shares had declined by 38% on Monday compared to the day before the Brexit vote. A week previously, in anticipation of a remain vote, Bank of Ireland shares had increased in value by 19%. Yesterday, they fluctuated again. It is volatile. While the volatility remains, I am not planning to sell Bank of Ireland shares.

While Permanent TSB is recovering well, its balance sheet is significantly repaired and it is doing much additional business, it is not ready for market yet. There is no active consideration of selling Permanent TSB shares. I set out the position regarding AIB in the Dáil recently in response to questions from Deputies Michael McGrath and Pearse Doherty, and the position has not changed. The programme for Government states that we will not sell more than 25% of any bank for a certain period of time. Our intention was always to sell 25% of AIB during the last quarter of the year.

However, before ever there was Brexit, it was quite clear there was volatility emerging in the value of bank shares in different parts of Europe. We said we would not go to the back end of this year but, more likely, do it in the first six months of next year. That is the position as stated. I am not stating a new position today. Everybody knows, however, that as circumstances change, strategy changes.

The underlying policy is that it is our intention to sell a tranche of AIB shares, up to 25%, at a time when best value for the taxpayer can be achieved. Again, we are not under any pressure from any other consideration. If we were still in the position that obtained three years ago, we would be saying we would have to sell the shares because our national debt is too high and we need to get the yield to bring it down. Matters have moved on because the national debt at the end of 2015 - having peaked at over 120% - is down to 94% of gross domestic product. The estimate for the end of 2016 is for it to be down to 88%. The estimate for the end of the forecasting period to 2021 indicates that it will be down to 72%. We are ahead of the European average at this stage, and certainly ahead of the Eurogroup average. We are not constrained by considerations of debt reduction to sell bank shares or any State assets at a time other than when it suits in order to get the best return for the taxpayer.