THE Irish Nationwide Building Society has been lobbying the Government for legislative changes that would allow it to sell on a large block of its shares following a stock market flotation.

A Dail committee is today due to discuss joint Fianna Fail/Progressive Democrat amendments to the Central Bank Bill which, if accepted, would clear the way for societies to quickly enter a joint venture or to agree to a takeover after a flotation. However, it is thought that the Government will oppose the amendments.

Irish Nationwide managing director, Mr Michael Fingleton insisted last night that the society had not yet taken a decision to become a public company. He added that discussions with Government Departments to change the legislation were to allow the society to "keep its options open".

"We haven't decided to go public. We always have to consider our options. It would be negligent of us not to have all possible options available," Mr Fingleton said.

Under the current legislation, a building society is prevented from selling off more than 15 per cent of its shares, or agreeing a takeover for five years, after a flotation.

If adopted, the amendments to be discussed today would remove this restriction. But it appeared likely last night that the Government would reject the amendments due to their implications for the rest of the building society movement.

The amendments, proposed by Fianna Fail deputy Mr Charlie McCreevy and Progressive Democrats deputy, Mr Michael McDowell, state that a society should be able to sell more than 15 per cent and up to 100 per cent of its shares to any one person, if it has been approved by the society's board of directors.

The proposed amendments farther provide, however, that the Central Bank would have discretion in approving circumstances under which the existing rules could be overriden.

In recent months, as reported in today's edition of Public Affairs News, Mr Fingleton has made representations to the Minister for Finance, Mr Quinn, and to the Minister for the Environment, Mr Howlin, for the removal of the five year restriction.

Another building society, the EBS, is believed to be opposing such a move, making a strong case to the Government to leave the legislation unchanged.

Mr Fingleton said last night that the society has been lobbying for such a change in the legislation for the past five years, claiming that the current Central Bank Act is "unjust" to building societies.

"We are in a free market now. We are all facing competition. All we want is to have the same options as other financial institutions" he said. He believes societies should be given winder options to enter joint ventures.

The Central Bank Bill was the only piece of legislation to come before the Dail over that period, into which the necessary amendments could be introduced, he said.

The flotation of the society would bring a windfall for its members, who would be entitled to free shares at the time of its flotation. Like depositors and mortgage holders who qualified for free shares when the Irish Permanent converted to a public company, most account holders with the Irish Nationwide would be allotted shares if it came to the market.

Irish Nationwide has remained as one of the most profitable Irish building societies. Last year, it reported pre tax profits of £22 million, up 5 per cent on the previous year.

The society has also made a bid to buy the TSB bank and has previously expressed an interest in buying the State owned ACC Bank.