The dispute at ACCBank, which threatened to derail plans to merge and float ACC and TSB next year, is close to resolution.

The 490 staff at ACCBank, who have blacked any co-operation with the merger, are expected shortly to receive proposals from their trade unions that should end the stand-off.

SIPTU, which now represents 450 ACC staff, has told its members it is "very close" to a breakthrough which should allow it to return to the negotiating table.

It has indicated in a circular that SIPTU has received guarantees from ACC and TSB management that there will be no redundancies and no compulsory relocations as a result of the merger. Substantial progress is also reported on voluntary severance and early retirement packages and details have been secured on the various retraining facilities that will be made available to staff.

Meanwhile, Fine Gael finance spokesman, Mr Michael Noonan raised the industrial dispute at ACC in the Dail yesterday. He asked the Minister for Finance, if he believed it was not too late for the unions and employees to have second thoughts on the merger and flotation. Mr McCreevy said trade union leaders and their constituents had shown a positive attitude to the project.

"I am as positive as I was some months ago about the outcome. These little difficulties should be resolved through the normal industrial relations machinery of the board and management of the bank and its members," he said.