Brendan Smith (Cavan-Monaghan, Fianna Fail)
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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.

Seán Sherlock (Cork East, Labour)
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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.

Joanna Tuffy (Dublin Mid West, Labour)
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Will a copy of the Minister of State's contribution be furnished to Members in due course? It does not appear to have been supplied.

Seán Sherlock (Cork East, Labour)
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Yes, certainly.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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It will be fine if it is circulated later to Members.

I thank the Minister of State, Deputy Sherlock, for his response. He made some comments recently with regard to the industrial development agencies in general and the IDA in particular and I share the views he expressed. I note his statement today referred to the success of the financial services industry and the inward investment in recent years. Moreover, in many of his statements on the investment in research and development that now is paying dividends, he quite rightly lauds the policies that have been developed and implemented over the past decade.

None of us is suggesting we come into conflict with the union's position, proposals or discussion with the company.

It is much better that a Government representative, such as the Minister, Deputy Bruton, or the Minister of State conveys to the company the concerns of the workers and community. We want to maintain and increase the number of jobs in the country if possible. Based on the figures I quoted, Aviva is a very profitable company and is doing extremely well.

I hope the Government will not be responding to a negative announcement from the company. It is essential that members of the Government at ministerial level take an active approach to convey to the company our anxiety that it retains its staffing complement in the country at a difficult time for employment. The Government can, in its deliberations with the company, deal with any concerns it might have and provide an analysis of the economy.

Sending a development agency to deal with the company on its own when there is a major threat to jobs is not adequate. I am sure the Minister of State agrees the Government has to take a hands on approach to this issue when people's jobs and livelihoods are at stake. We all sincerely hope jobs and livelihoods are not at stake and want to ensure we take every opportunity to send a clear message to the company that we want it to retain its staffing complement on our island.

Seán Sherlock (Cork East, Labour)
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I acknowledge the Deputy's statement. There is no sense of complacency on the part of the Government on this issue. We must have regard to the fact the Cabinet has asked the IDA, given its knowledge of the company, to continue to work with it to mitigate any possible negative outcomes.

Let us be frank. I can dance around the language of redundancies and job losses but if a multinational company that transcends many boundaries has decided the course of action it will take, it is difficult for Governments to influence decisions. Nobody wants job losses but sometimes decisions are made in other centres, financial powerhouses and capital cities other than Dublin.

The key point is for us to engage with the company and try to move it from its current trajectory in terms of job losses. We will do everything we can in that respect. If the company makes a decision God or man will not shift it. We should be honest and frank about the discourse. We must try to ensure the same situation as TalkTalk does not arise and there is an early warning system that ensures we can engage with a company to try to stem the flow of job losses and learn valuable lessons to ensure the policy is tapered to have the right mix of companies.

I will engage further with the Minister, Deputy Bruton. The Deputy's comments are on the record of the House and I will relate them to the Minister and the IDA.