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

The Deputy made a number of valid points. Having raised the matter in public, it falls on AIB to reply to him directly, as it has responsibility for the rationalisation programme that has been announced. The Deputy expressed forcefully the local opinion of some of the decisions that have been taken. I understand that where it has been decided to close a branch or part of a branch, a branch in another location will take on that business. Given the fact that the Deputy has expressed in public his opinion that this has been done in a ham-fisted way, the AIB has a responsibility to reply.

I wish to raise two points. If there is to be a smaller banking system, it is inevitable that branches will be closed. Our banking system grew too large and, as I am sure Deputy O'Donovan agrees, relied on a dysfunctional model. Many of the people paying the price for that in the form of rationalisations are loyal customers and workers.

As I am sure the Deputy appreciates, the banking industry has changed dramatically. My understanding is that only one in ten customer transactions are completed over branch counters. The remaining 90% of transactions are conducted online or via mobile telephones.

I know AIB sub-office locations carry out an average of 20% of transactions carried out in AIB branches, so although it is not a major amount, I appreciate it is significant in the relevant areas. My understanding is that the bank now has 700,000 customers actively using Internet and telephone banking, with approximately 6.5 million log-ins per month. The banking industry has changed dramatically and it is inevitable in such circumstances that there will be rationalisation. How that is managed is a matter for the bank and I agree that the dialogue it has with customers, stakeholders and communities is absolutely crucial.

If something has happened that is untoward, it is in the first instance a matter for AIB management. If a more comprehensive reply can be given in terms of a better configuration of service in the counties where there is a specific need, it is a matter for the bank. If the Department is to indicate anything to the bank in public, it would be that the stakeholders must be understood in the configuration of a new service.

We are entering a totally new world with the banking system arising from the Government's actions regarding bank recapitalisation and the pillar bank structure. That requires a smaller banking system, and the Deputy is aware this was mentioned in our election manifesto. It is inevitable that events such as this will happen but they must be managed and done in a sensitive way. I agree with the Deputy in that the bank has a responsibility to those communities and the taxpayer to do this.

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