Queries raised on ICC sale collapse

The Minister of State for Science, Technology and Commerce, Mr Noel Treacy, told the House he did not know if bad will had been…

The Minister of State for Science, Technology and Commerce, Mr Noel Treacy, told the House he did not know if bad will had been involved in the unsuccessful attempt to sell the ICC Bank. He disclosed that an indicative bid of around £350 million had come from the Bank of Ireland, but the Minister for Finance had not been happy with the bank's indications as to what it was going to offer "at final process".

Pressed by Mr Shane Ross (Ind) and Mr Brendan Ryan (Lab) to reveal what the bank had subsequently intimated it would be willing to pay, the Minister said he did not have the figure. It was immaterial, as the sale attempt had been inconclusive.

Mr Ross retorted angrily: "This is absolutely ridiculous. He does not know what the price is because he is the wrong Minister from the wrong Department."

Mr Treacy said he was sure Mr McCreevy knew the figure, but he was in Helsinki. He would try to obtain the information sought by Mr Ross.

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Mr Ross said suggestions had been circulating that the bank had withdrawn its bid when it was the sole bidder - a perfectly logical thing to do - and had come down to £200 million. He had to conclude that it had withdrawn its £350 million bid. The Minister's explanation that the Bank of Ireland had suddenly decided the ICC was not a "perfect fit" for its operations did not make sense.

Mr Joe Doyle (FG) said it seemed that the bank had been trying to talk down the price. It must have offered something to the Minister which he felt was not acceptable. The House should be told what bottom price it had wanted to reach.

Mr Ross said the efforts to sell the ICC had turned into a shambles. He demanded to know why all 10 banks which had initially indicated interest had withdrawn. They had run out of the room in horror for some reason at the prospect of buying this bank. The Bill, which increases the borrowing limits of the ICC and the ACC, passed all stages.