Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

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.

Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context

I thank the Deputy for raising this matter. As I reported to the House on the 22 September, Aviva is undertaking a review of its operations in response to a significant reduction in demand for insurance and pensions products. Aviva has found it necessary to review its operations here to ensure its cost base is in line with domestic demand to ensure sustainability. The CEO of Aviva Ireland has assured the Minister for Jobs, Enterprise and Innovation that no decisions have been taken on the final structures or potential job losses. He has also confirmed that Aviva is committed to remaining a significant player in the Irish insurance and assurance market.

As the CEO of Aviva has confirmed that the company is in ongoing contact with employee representatives, it would be premature to speculate about the outcome. To be fair, it is pertinent that the Government allow the unions to engage with Aviva to see where that process might lead. The company has given a commitment to communicate the results of the review to my Department and IDA Ireland when completed. We anticipate that the review will be completed by the end of October. In the interim, IDA Ireland is in contact with the company at both corporate and local level, with the intention of mitigating the impact of potential negative outcomes following the review. IDA Ireland is also in dialogue with the company on potential future opportunities in respect of the company's significant international business. In this context, recent media coverage does not reflect a formal announcement by the company. The review of its operations is ongoing and the company has not officially confirmed the scale of potential job losses. My Department, through IDA Ireland, is monitoring the situation closely and will engage further with the company at any stage.

Billy Kelleher (Cork North Central, Fianna Fail)
Link to this: Individually | In context

Media reports are obviously not definitive on decisions a company might make on restructuring and job losses. Nonetheless, they raise concerns for the employees. Aviva will remain a dominant player in the Irish insurance market, even if it halves its workforce, as there are over 2,000 people currently employed by the company. That does not mitigate the fact, however, that there is major concern and there must be strong engagement with IDA Ireland and the Department prior to any restructuring. Waiting for restructuring means one thing only; the decision has been made at corporate level. It is then too late for active engagement with the agency and the Department.

We understand the pressures in the insurance and assurance markets, the financial services industry, as well as call centres, given recent job losses in Waterford and the concerns expressed about Rigney Dolphin in that county. The only way the anxiety and concern can be alleviated is through a definitive decision being made by the company as quickly as possible. Engagement with the Department and IDA Ireland prior to the review being completed is the obvious thing to do, as opposed to waiting until such time as the company has announced its restructuring, when it will be too late to do anything.

Seán Sherlock (Cork East, Labour)
Link to this: Individually | In context

Let us be straight. If a global company such as Aviva decides to restructure, it is pertinent, if there is engagement with the trade unions in the organisation, that we allow such a process to proceed. I have stated IDA Ireland is in dialogue with the company on potential future opportunities. I have also stated it is in contact with the company at both corporate and local level, with a view to mitigating the impact of potential negative outcomes. I note the point made by the Deputy which I will pass on to IDA Ireland. However, it is vital that we allow the review to take place. The CEO has assured the Minister that no decisions have been taken on the final structure and potential job losses. However, it is important that we take on board what the Deputy is saying and reflect the concerns outlined and the view that IDA Ireland raise the ante in advance of the review. That is a fair point.