NOONAN’S €3BN AIB SHARE SALE
Government flogs 25% stake in lender
FINANCE Minister Michael Noonan last night announced the sale of 25% of the public’s AIB shares.
In what could be his last act in Government, he approved the sale despite a Labour motion stopping the move having passed through the Dail two weeks ago. The sale was committed to in the Programme for Government and the money will be used to service our debt. Mr Noonan said: “The Government’s long-held policy is the State should exit its banking investments in a measured and prudent manner, returning ownership to the private sector. “The strong progress made by AIB and current market conditions mean now is the right time to commence this process and proceed with an initial sale of approximately 25% of the State’s shareholding.” Earlier a Government source said: “In relation to timing, we’re in one of the available windows in May/june. The other being the autumn. If he felt conditions were right he would sell now.” Mr Noonan was not required to seek approval from Cabinet for the move as it has been provided for in the Programme for Government. Writing in the Irish Mirror, Labour leader Brendan Howlin slammed the decision to ignore his motion preventing the sale and insisted the money be spent on infrastructure. He said: “I have the resolution of the Dail that says the Government should not do that. “It is important for the parliament that’s behind us here to have meaning in a democracy. “We’ve long argued infrastructure badly needs significant investment. The Government is in the middle of a capital review that has €2.6billion available for new projects between now and 2021. “With this €3billion we’re likely to get from AIB, we could do much more.” Mr Howlin added the cash could be used to bridge the gap in Ireland’s healthcare funding needs, as addressed in the Future of Healthcare report published yesterday. He said: “One of the pivotal suggestions in that document is for the allocation of a transition fund of €3billion. “Let’s give a dividend back to the people and say the €3billion should be ring-fenced to transition a functioning health service. “Wouldn’t that be something back to the people for all their sacrifices in recapitalising and reinvesting in AIB over the years?” Taoiseach Enda Kenny said yesterday that the proceeds of the sale “may not be used to fund increased expenditure irrespective of whether such expenditure is classified as current or as capital.” But Mr Howlin believes this is a fight that Ireland could take to the EU.
Our policy is to exit our banking investment. Now is the right time MICHEAL NOONAN DUBLIIN YESTERDAY