Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

As stated, that is not the policy. Government policy is to progressively sell the State's shares in AIB. We do not believe a State bank is the best model for the Irish economy in the medium to long term. There is a fourth alternative. We could sell part of AIB and retain a significant chunk of it in the hands of the State for a long time so that we would have an influence over banking policy through what is emerging as the primary bank. There are other alternatives. We are taking decisions as we move along, with no hard and fast position having yet been taken, other than that we do not want a nationalised banking system as a permanent feature. We regarded the intervention by the State in the banks as a rescue operation, and a very expensive rescue operation. We want a significant private holding in AIB in due course. That does not mean we would not retain a significant proportion of the bank. I am prepared to discuss all of this with the Deputy at the finance committee, because there is not as yet any firm policy position on these issues.

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