Dáil Éireann Debate, Tuesday - 23 June 2015
232. Deputy Joe Carey asked the Minister for Finance his views and those of his Department in respect to the plans by Allied Irish Banks to transfer application and development management to a third-party service provider in the context of consumer service provision; and if he will make a statement on the matter. [24604/15]
View answer243. Deputy Billy Timmins asked the Minister for Finance his views on correspondence (details supplied) regarding proposals by Allied Irish Banks to outsource work and staff from the application and development management teams within its information technology division to a third-party service provider; and if he will make a statement on the matter. [24799/15]
View answer259. Deputy Joanna Tuffy asked the Minister for Finance if he is aware that Allied Irish Banks is currently developing proposals to outsource work and staff from the application and development management teams within its information technology division to a third-party service provider, which decision will have a huge impact on customers and staff; if he will request the bank's senior management to reconsider this decision; and if he will make a statement on the matter. [25019/15]
View answerI propose to take Questions Nos. 232, 243 and 259 together.
As the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced.
The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.
I have been informed that AIB has not at this stage confirmed any agreement to outsource some of its technology services in Application and Development Management teams to a third party provider. Should any such decision be confirmed, then affected staff will be informed immediately and AIB will enter into a full process of information and consultation with employee representatives, as required both by law and under engagement principles agreed with the Irish Bank Officials Association (IBOA).
