Brendan Smith (Cavan-Monaghan, Fianna Fail)

Aviva Insurance employs 2,000 people across the State and has enjoyed a profitable year to date according to its mid-year results. It announced significant changes in its operations last May, which should have been a clear indicator of possible job losses but the Government still has not taken any action and has stated it will wait until the company completes its review.

Aviva Insurance is a British company that employs 1,200 people in Dublin, 200 in Cork, 200 in Galway and additional staff in various branches throughout the country totalling 2,000 staff. Ireland is the only European country in which Aviva has life insurance, general insurance and health insurance operations. Aviva posted positive half-year results in August 2011 and overall, the company reported a 5% increase in its operating profit, up to €1.5 billion, and an increase of 21% in its operating profits in Europe to more than €600 million.

In the first six months of the year, general insurance and health premiums increased by 5% at the insurer, due to strong sales of its health insurance products, as it is benefitting from consumers exiting from the VHI. On the investment side, it reported life and pensions sales in Ireland increased by 16%, "following continued opportunistic sales of single premium investment bonds". Given these results, there must be scope for Aviva to retain its employment numbers. It is important that the Government and the IDA exploit all opportunities these positive figures present to retain jobs.

The company announced in May it is moving its European headquarters from Dublin to London, having established it in the former in only 2009. More relevant to possible job losses, it announced it was restructuring its business. The fact the company announced last May it was undertaking significant changes should have alerted the Government to possible future job losses. Did the Government or its agencies take any steps at that early stage? According to an internal Aviva review seen by RTE's "Prime Time" programme, between 300 to 500 jobs are under review as the company considers moving part of its general insurance operation to Britain.

The company has refused to confirm or deny possible job losses and has stated such talk is premature. I understand this was the response received by the Unite trade union in its recent discussions with the company's management. The Taoiseach, Deputy Kenny, stated media reports about job losses were causing "great anxiety and concern for those who work in Aviva" Moreover, in the Dáil yesterday, he declared "It is only right and proper that I do not comment on this until such time as the company arrives at its conclusions, having carried out its analysis." The IDA has been in contact with Aviva but according to the Taoiseach, it cannot make any judgment on the latter's future until the internal review by the company is carried out. It must be the Government's role to be proactive on these issues. As the company is currently in the process of reviewing its options, this is the precise stage at which the Government can have a positive input, rather than leaving it until the company has made decisions.

Finally, all Members are conscious of the concerns of the workers and the families regarding their future job prospects.

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