Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

As the Deputy will be aware and notwithstanding the fact that the State is a significant shareholder in AIB, the Government must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the memorandum on economic and financial policies agreed with the European Commission, the European Central Bank and the International Monetary Fund. The Deputy recognised this fact in the course of his contribution. A relationship framework has been specified that defines the nature of the relationship between the Minister for Finance and the bank. This framework stipulates that the Minister has no role in the commercial decisions of the bank, with these decisions remaining the responsibility of the board and management of the institution.

As the Government has stated previously, the Deputy will appreciate that it is an inevitable but unfortunate consequence of the necessary restructuring and return to viability of the banking system that branches in certain towns and villages across the country will be closed. The Government appreciates that the branch closures will have an impact on certain towns and villages, but the Department has been informed by AIB that the latter is working closely with its customers to ensure that the disruption is minimised and to provide a range of alternative banking options, such as the use of local post offices and mobile banking facilities, to affected customers.

As part of AIB's restructuring plan to return itself to profitability and reduce dependence on State support, significant cost reductions will be required in the coming years. In this regard, AIB announced its branch rationalisation programme in July of this year. The bank's branch overhaul will include a combination of six amalgamations, 16 full branch closures and 45 sub-office closures across the country. In total, 67 locations will be impacted, equating to approximately 27% of the bank's branch network. It is worth noting that AIB will still have approximately 200 branches in Ireland post rationalisation, coupled with an additional 80 EBS outlets.

Nevertheless, to mitigate the impact of the branch closures on customers, AIB intends to strengthen its long-standing relationship with An Post. It is also launching a new mobile bank service to provide certain banking services to customers in remote locations. The mobile service will allow customers to make lodgements and withdrawals, pay bills and order foreign currency.

Currently, AIB banking services are available in more than 1,100 An Post outlets nationwide. The current services at any An Post outlet allows personal and business AIB customers to make cash lodgements, avail of cash withdrawals of up to €600 per day, pay their credit cards bill and use any of An Post's own-brand services, including bill payments, postal drafts and foreign currency. In addition, AIB plans to build on this successful relationship with An Post and has arranged for additional banking facilities to be available in more than 90 selected outlets. AIB and An Post management are working closely together at local, regional and national level to ensure the successful launch of this enhanced service and An Post staff will be fully trained to offer the new service in advance of the branch closure dates.

As part of the closure process, the bank is engaging extensively with customers, businesses and community groups in affected areas to ensure an adequate understanding of the rationalisation process and is endeavouring to keep all stakeholders fully informed to minimise any inconvenience.

See this speech in context