Quinn indicates action soon on future of TSB

THE future of TSB is likely to be decided within the lifetime of this Government, the Minister for Finance has said.

At Dail question time yesterday, Mr Quinn said: "I intend to make decisions" on the future of the bank. This follows recent speculation that opposition from within the Labour Party was delaying outline plans which had been drawn up to sell off the bank through a fresh invitation to bidders.

Mr Quinn stressed that the possible sale of TSB was a "delicate and complex" matter. But he added that, while negotiations had not been completed between the Government partners, he hoped soon be in a position to bring proposals to the Government.

Asked whether difficulties between himself and the Tanaiste Mr Spring, on the proposals on the sale were delaying a decision, Mr Quinn insisted this was not the case. The reason for the delay was that the sale was delicate and complex, he said.

While the State is the beneficiary of the proceeds, "we cannot in any way legally write the conditions under which it is sold".

Referring to the method by which the sale would occur, he said the initial plan under the former Fianna Fail/Labour government was for a privately-arranged sale. However, if this had gone ahead, he said, he "would have been open to legitimate criticism that I had acquiesced to a sale that had not been open to the normal scrutiny of public tender Mr Quinn conceded that Fianna Fail deputy Martin Cullen's observation that the Government had significantly affected TSB's opportunities for expansion could be made. In response to Mr Cullen, he replied: "That observation can be made and it concerns me."

Asked by Mr Cullen whether he would leave TSB "in limbo", Mr Quinn answered that his career has been characterised by trying to take action. "I do not propose to alter that pattern," he said.

When TSB was first put on the market, Ulster Bank, National Australia Bank and Irish Nationwide Building Society made bids.