Billy Kelleher (Cork North Central, Fianna Fail)

I do not want to cause any further anxiety, distress or concern to the employees of Aviva Insurance. There are concerns given some reports in newspapers of discussions that trade unions are having with Aviva management. That Aviva HR managers from throughout the world met in Spain recently to discuss restructuring rings alarm bells. The announcement by Aviva Health in May to move its European headquarters from Dublin back to London rang alarm bells that further restructuring could take place affecting its operations in Ireland. Aviva employs more than 2,000 people in Ireland. The headquarters could have job losses of up to 500 and now there are disturbing reports of possible further job losses.

We must express concern in the context of existing Aviva employees. We need to consider the broader issue of the sectoral plans that would be required by Government and the lead agency, IDA Ireland, in discussions with companies whose headquarters are located in Ireland. Primarily we are trying to promote Ireland as a place for foreign direct investment and trying to promote the International Financial Services Centre. It plays a very positive role in the economy and employs large numbers of people. However, when an internationally recognised company with a strong brand such as Aviva moves its headquarters out of the country, it could damage our reputation. We have invested much in trying to promote Ireland as a place for foreign direct investment and this issue could raise concern for other companies considering locating in Ireland.

I do not expect the Minister of State to be able to wave a magic wand, but the Government and IDA Ireland need to have stronger engagement with Aviva on its restructuring plans as opposed, as the Taoiseach said, to waiting for this review to take place and then for the company to announce that following its review it is restructuring at which point it is too late for us to embark on any meaningful engagement with the company.

Will the Minister of State confirm that there has been strong engagement by the Minister and the lead agency with the company on its international restructuring? What efforts are being made to draft sectoral plans for the insurance, hedge fund and financial services industries which are under enormous pressure because of the downturn in the broader international economy? Those perceptions that might arise following Aviva's decision to relocate its headquarters could have a damaging impact on Ireland's ability to attract high-end high-value companies such as Aviva to Ireland. This is particularly true of those involved in insurance, financial services and hedge fund management.

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