Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This is the first time I have faced the Minister, Deputy Noonan, across the floor of the House since he made the statement about his medical condition. I genuinely want to wish him all the very best in his recovery.

The issue I raise concerns the sale by one of Bank of Ireland's largest shareholders, Wilbur Ross, of his entire shareholding in the bank, and in particular the implications that may have for the State's continuing shareholding in the bank, which now lies at approximately 14%. Obviously, the headlines are being dominated by the handsome profit Wilbur Ross made on the financial investment in Bank of Ireland. I will not pass judgment on that issue because, back in the summer of 2011, there was not exactly a queue of international investors willing to invest in Irish banks. He took a punt, took a risk, and it has certainly paid off handsomely for him. It is for other market analysts to assess whether the appropriate price was paid at that time.

The decision he has made to sell his entire shareholding in Bank of Ireland does, of course, raise some concerns, given it comes on the eve of the first European-wide stress tests, and Bank of Ireland is one of the banks to be covered by those stress tests. Today, I spare a thought for the many thousands of ordinary shareholders in Bank of Ireland, who lost everything on their investment in its shares and, indeed, the shareholders in the other banks, who also lost everything prior to the virtual collapse of the banks and their share prices back in 2008.

The issue I want to focus on primarily is what are the implications for the State in terms of its 14% shareholding in Bank of Ireland. Clearly, given that over recent months a large stock of Bank of Ireland shares has been traded on the open market, I assume this has the direct effect of making it far more difficult for the State to dispose of its shareholding on the market if that is what the Minister was minded to do at this point in time, and, therefore, the sale of Wilbur Ross's shares will inevitably result in a delay in the State's disposal of its shareholding in Bank of Ireland.

What is the Minister for Finance's position as shareholder in Bank of Ireland on behalf of Irish taxpayers in terms of the disposal or retention of that shareholding for a period of time? In the context of the Government's efforts to secure retroactive bank recapitalisation, what is the position in regard to our shareholding in Bank of Ireland and also in regard to AIB? Is the Minister actively pursuing the option of disposing of some of our shares to the European Stability Mechanism, for example, in order for it to hold those shares and to have the result of essentially reimbursing Irish taxpayers in full or in part for the investment that was made in the Irish banks at the time the recapitalisation of those banks took place?

Given the very significant transaction which has taken place today - the disposal of Wilbur Ross's entire shareholding in Bank of Ireland - and despite the bank's description in 2011 of him and the other investors at that time as being long-term value investors, clearly that has not proven to be the case. His focus as an investor is on distressed assets, and he has worked the markets very well in this case and made a handsome profit.

My focus is on the State's position in respect of our 14% shareholding, the impact of today's transaction on that and the Minister's attitude to the retention or disposal of those shares.

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