Michael Noonan (Limerick City, Fine Gael)

Implementation of the goals set out in the programme for Government to which the Deputy refers will be introduced in a measured way and in accordance with the Government's priorities over the period of the programme. The Deputy will be aware that as part of the restructuring and recapitalising plans announced last March, as part of the PCAR and PLAR exercise, the banks are engaging in cost cutting plans which are under way. I refer to the consolidation of the banks around two pillar banks, made up of the merger of Allied Irish Bank and the Educational Building Society, alongside Bank of Ireland. The merger of AIB and the EBS which concluded last week will enable cost savings through shared services and economies of scale. By deleveraging non-core assets, the banks will be better placed to focus on supporting the domestic economy. The effect of these changes will bring about cost reductions which will improve operating margins and permit the banks to better absorb funding costs. The Government remains in consultation with the banks in connection with the more significant parts of the plans, including a significant reduction in employee numbers.

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