Dáil vote on suspending AIB share sale ‘not binding’

The Dáil has voted to suspend the sale of shares in AIB after an apparent gaffe by the Government due to the distraction of the Fine Gael leadership contest.

During a vote on the Labour Party motion not to allow the sale of shares to go ahead, the Leas Cheann Comhairle Pat ‘The Cope’ Gallagher asked who was against the suspension of the sale.

Nobody on the Government side indicated their preference and the motion was deemed to have passed. There was a further opportunity for the Government to call a vote but they did not do so.

Later Mr Gallagher said there was some confusion but it was not his responsibility as Leas Cheann Comhairle.

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Opposition TDs believed the Government TDs were distracted by the internal party leadership challenge.

Labour leader Brendan Howlin later tweeted: "Government TDs forgot to take their own side. Labour motion delaying sale of AIB shares passed."

Informed sources played down the impact of the Labour Party motion being passed however, since the Government has already made a decision to press ahead with the AIB flotation and the motion did not go through a Dail vote that would have reflected the opinion of parliament.

‘Distracted’

Sinn Féin finance spokesman Pearse Doherty tweeted: "The Dáil passed the motion not to sell AIB until the fiscal rules were re-negotiated, because the Government forgot to call a vote. It was distracted by the leadership issue."

The Government has lost numerous Dáil votes in the past that have been embarrassing but with no major impact.

It is expected that Minister for Finance Michael Noonan wil give the go-ahead next week for the issuance of an intention to float announcement for the bank before the next leader of Fine Gael is selected on June 2nd.

The Labour motion called for shares in AIB and Bank of Ireland not to be sold before a renegotiation of the EU's fiscal rules.

The motion also “asserts that the EU Stability and Growth Pact and fiscal rules currently prevent appropriate levels of investment and should be amended in order to facilitate a much needed increase in capital spending”.

In a statement, Minister for Finance Michael Noonan noted the passing of the Labour motion but said Private Members Motions “were not legally binding on the Government”.

“The Government position remains unchanged. The Programme for a Partnership Government clearly allows the Minister to sell up to 25 per cent (plus greenshoe) of Allied Irish Banks up to the end of 2018.

“The Minister has consistently stated that any sale of Allied Irish Banks will be based on advice from his officials and advisers based on market conditions and maximising value for the taxpayer.”