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

I am not averse to the State divesting itself of at least some of its shareholding in AIB at the appropriate time, but there should be no question of selling any of our shareholding in AIB, pending the outcome of the negotiation of a bank debt deal. Selling equity share capital in AIB now would be a complicating factor in that arrangement and we are supposed to be preparing an application for a deal on retroactive bank recapitalisation as soon as next month. It is, therefore, absolutely premature to speak about selling part of our shareholding in AIB until there is full clarity on the outcome of the bank debt deal negotiations. AIB is in recovery, but it still has a distance to travel. I am, therefore, concerned about divesting our interest in AIB at a time when competition in the banking sector is in such short supply. I called on the Minister before to bring forward a White Paper on the banking sector and the fundamental point is that any decision to sell part of our shareholding in AIB cannot be made in isolation from the overall strategy in the banking sector. That sector has not recovered fully by any means and it is premature for the State to divest some of its shareholding in AIB at this time.

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