Seán Sherlock (Cork East, Labour)

I thank Deputy Smith for raising this matter. My primary concern is with the workers facing uncertainty today. Taking account of the domestic economy, Aviva has decided to review its operations to ensure its capacity is in line with domestic demand to ensure sustainability. Industry figures show that general insurance has fallen by more than 20% in the past two years, while life insurance and pensions have fallen by more than 30%, due to concerns over long-term savings and people cancelling or reducing pension policies. Aviva has stated it is committed fully to Ireland and is currently in discussions with unions representing staff about the review. Until this review has been completed, it would be premature to speculate about the outcome. To be fair, it is pertinent that the Government allows the unions to engage with Aviva to see where that process might go.

As for the role of the IDA, the Deputy has greater knowledge than me in this regard and is well aware that it supports multinational companies predominantly trading outside Ireland or internationally. As part of its business in working to attract international activities into Ireland from multinational companies, the IDA has been in contact with Aviva at both corporate and local levels. The Minister has asked the IDA, given its knowledge of the company, to continue to work with it to mitigate any possible negative outcomes. Consequently, the IDA has been active in this regard.

Ireland has succeeded in building an international financial services industry that is diverse in the activities carried out and which enjoys a world-leading reputation in several sectors. While the past three years have represented a severe stress test for all the financial centres, firms at the International Financial Services Centre have shown resilience and flexibility. Employing 33,000 people directly and many more indirectly, the IFSC remains both critical as an employer and as a centre of economic activity. The goal of ensuring that jobs and economic activity are protected is a mainstay for the Government and I ask that Members allow further review to take place and for the discussions to conclude with the unions representing the staff. The Government undoubtedly will engage at a later point.

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