As you will be aware, operational decisions for the covered banks – AIB, Bank of Ireland, IBRC and Permanent TSB - remain the responsibility of the boards and managements of the institutions. Notwithstanding the fact that the State is a significant shareholder in these institutions, I must ensure that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as an asset to the State. The Relationship Frameworks between the Minister for Finance and each bank define the nature of the relationships with those banks as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. These Frameworks were published on 30 March 2012 and can be found at; http://banking.finance.gov.ie/presentations-and-latest-documents/. As I have stated previously, the Deputy will appreciate that it is an inevitable, but unfortunate, consequence of the necessary restructuring of the banking system – and return to viability - that branches in certain towns and villages will be closed. I appreciate that the branch closures will have an impact on certain towns and villages, but I do expect that all the banks involved – not just AIB and Permanent TSB – will work with their customers to ensure that they minimise the impact of the closures.
The Government is committed to the development of rural areas and supports this commitment with resources that aim to diversify the rural economy and improve the quality of life in rural areas. Programmes managed by the Department of the Environment, Community and Local Government such as the Rural Development Programme and the Local and Community Development Programme continue to provide the financial resources necessary to support both economic and community activity in rural Ireland thereby laying strong and sustainable foundations for vibrant rural communities going forward. Such communities are the cornerstone of economic recovery particularly in rural areas.