Mitchell calls for bank `cleansing'

There has to be a comprehensive cleansing of the "sort of culture" in the ACC Bank that was exposed by the PAC inquiry or the future sale of the bank would be jeopardised, according to Fine Gael's finance spokesman.

Mr Jim Mitchell, former chairman of the Public Accounts Committee, also "roundly criticised" the Department of Finance for the manner in which it handled the ACC Bank in the past. "It is all the more galling that banks owned by the Department of Finance . . . exhibited some of the worst examples of bad banking practice." He said the Department "seriously lapsed in its supervision responsibilities".

The House also heard how bank managers were charging £20 for a half-hour appointment. Mr John Perry (FG, Sligo-Leitrim) hit out at the "cartelism" of the banks and such charges. "A cheque for £15 can be worth £7 to the bank," he said and "a half hour appointment with the bank manager can be charged to one's account at the rate of £20".

The two TDs were speaking during a debate on the ACC Bank Bill which was introduced by the Minister of State for finance, Mr Martin Cullen. Mr Mitchell said the ACC Bank had a "once-off opportunity" to get its accounts in order in a transparent and comprehensive way. He believed the bank was addressing the issue seriously.

Outlining the provisions of the legislation, Mr Cullen said it would facilitate the establishment of an employee share ownership trust and provide for the future sale of the ACC Bank. It also increases the authorised share capital of the bank from £50 million to £100 million. The ESOP will have a 14.9 per cent stake in ACC Bank being available to staff, 5 per cent for change in the bank and 9.9 per cent for purchase.

Labour's finance spokesman, Mr Derek McDowell, suspected that the purpose of the Bill was to "kick the ACC's management and trade unions in the hope that they will get their acts together" to bring to an end "the type of adventurism of the past two years".