Dáil Éireann Debate, Tuesday - 15 June 2021
84. Deputy Brendan Smith asked the Minister for Finance if he has had discussions recently with a bank (details supplied) on its decision to withdraw from the market and with another bank in relation to its plan to close 88 branches here given the concern of employees and customers on the resulting loss of banking competition here; and if he will make a statement on the matter. [31696/21]
View answer129. Deputy Mick Barry asked the Minister for Finance if he will take steps to protect jobs and services in the banking sector; the engagement he has had with bank management and trade unions in this regard; and if he will make a statement on the matter. [31779/21]
View answerI propose to take Questions Nos. 84 and 129 together.
The withdrawal of Ulster Bank and the potential withdrawal of KBC Bank Ireland (KBC) from the market as well as the decision by Bank of Ireland to close 88 branches in the Republic of Ireland are regrettable, particularly for their customers and staff and they represent unfavourable developments for the Irish banking market.
However, as the Deputy will be aware, decisions with regard to staffing matters and the provision of services, are the sole responsibility of the board and management of the individual banks, which are run on an independent and commercial basis and as Minister for Finance, I have no role in such decisions.
I note that Bank of Ireland has commented that it will be working closely with all colleagues at these branches and will be setting out a range of options, including relocating to a different branch, moving to a new role in the bank, or voluntary redundancy for those who choose it. I also welcome Bank of Ireland's announcement of a partnership with An Post to ensure that counter services will still be available for its customers locally.
With regards to Ulster Bank and KBC, whilst the management of staff matters is entirely a matter for the Banks and any counterparty who acquires any of their business, I would expect all stakeholders to be very sensitive in relation to the needs and rights of staff. This includes full compliance with any statutory requirements, and honouring all agreements in place between the bank and staff representative bodies. In addition, I would expect these entities to engage with staff representative bodies as appropriate.
By way of update, on Friday 11 June 2021 Ulster Bank announced that a new Colleague Agreement has been reached with the Financial Services Union (FSU) subject to a ballot of its members. The Deputy will be aware that I have met with representatives from both Ulster Bank and its parent company, NatWest in recent months. During these engagements, I have always strongly emphasised the importance of timely communication with staff, customers and other stakeholders in relation to strategic decisions regarding Ulster Bank. I also met with the Financial Services Union shortly after NatWest’s announcement and I have committed to further engagement with them in relation to this issue.
I note separately that PTSB and AIB have both mentioned in their recent Q1 trading statements that negotiations are continuing with NatWest in relation to the potential acquisition of parts of Ulster Bank’s portfolio.
In relation to KBC, officials from my Department met with representatives from KBC last month as part of the normal engagements with the banking sector. In light of its recent announcement, KBC confirmed that work on negotiations are underway, as provided for in the Memorandum of Understanding with Bank of Ireland. KBC emphasised that it is engaging with staff in relation to the announcement.
I welcome the engagements which are taking place both between Nat West and AIB and PTSB and between KBC and Bank of Ireland, as well as the progress last week between Ulster Bank and the FSU. While these are commercial negotiations, the Government is supportive of trying to bring about an outcome that is good for AIB, PTSB, and Bank of Ireland, as well as for the staff and customers of Ulster Bank and KBC and for the Irish economy generally.
