Dáil Éireann Debate, Tuesday - 9 November 2021
100. Deputy Brendan Smith asked the Minister for Finance if he has had recent discussions with banks (details supplied) in relation to the protection of employment due to their respective decisions to exit the Irish market and close branches throughout the country; and if he will make a statement on the matter. [54334/21]
View answerThe withdrawal of Ulster Bank from the market and 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, decisions in this regard are the sole responsibility of the board and management of the banks, which must be run on an independent and commercial basis.
In relation to Bank of Ireland, my officials and I have ongoing engagement with each of the banks in which the State has a shareholding. This engagement has been in place since the State first invested in the banks and it includes regular meetings where a wide range of topics are discussed. In relation to branch closures, Bank of Ireland has said that it will be working closely with all colleagues at these branches and will be setting out a range of options which include relocating to a different branch, moving to a new role in the bank, or voluntary redundancy for those who choose it.
In relation to Ulster Bank, on 22 September, I met with Alison Rose, CEO of NatWest, Sir Howard Davies, Chair of NatWest, Jane Howard, the CEO of Ulster Bank, and Martin Murphy, the Chair of Ulster Bank. At this meeting, they updated me on the progress of the withdrawal and I emphasised the importance of an orderly withdrawal.
In this regard, I welcome the agreements which have been put in place by Ulster Bank since its announcement:
- On 11 June, Ulster Bank announced that a new Colleague Agreement has been reached with the Financial Services Union subject to a ballot of its members.
- On 28 June, Ulster Bank agreed a legally binding agreement with AIB in respect of a €4.2bn portfolio of performing loan products. I note that Ulster Bank expects c. 280 staff wholly or mainly assigned to this loan book to transfer also.
- On 23 July, Ulster Bank reached a non-binding agreement with PTSB for the proposed sale of €7.6bn performing loans, Ulster Bank’s Lombard Asset Finance business, and 25 Ulster Bank branch locations. I note that if this potential transaction is delivered, it is expected that between 400 and 500 Ulster Bank employees will transfer to PTSB.
Whilst the management of staff affairs, including staffing levels, is entirely a matter for Ulster Bank and for whoever acquires its business, I would expect all entities to be very sensitive in relation to the needs and rights of staff and to fully comply with all statutory requirements. In addition, I would expect engagement with staff representative bodies as appropriate.
