Peadar Tóibín (Meath West, Sinn Fein)
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Question 2: To ask the Minister for Jobs; Enterprise and Innovation the contact he has had with the management and staff of Aviva Ireland; if it is his priority to retain these jobs in the economy here. [28928/11]

Richard Bruton (Dublin North Central, Fine Gael)
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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 Irish operations to ensure its cost base is in line with domestic demand to ensure sustainability.

Industry figures show that motor and home insurance has dropped by over 20% in the past two years. Also, life assurance and pensions have dropped by over 30% due to concerns over long-term savings, people cancelling or reducing pension policies. This has impacted greatly on Aviva's operations in Ireland. The fall in the Irish market has led to the present restructuring review which the company's European management is leading.

Aviva has been undertaking major restructuring across of all of its markets. In recent years, Aviva staff numbers in the UK have dropped from 33,000 to 20,000 and the company's total workforce has dropped from 56,000 to 36,000.

I have met with Aviva's chief executive officer for its worldwide operations, its European director as well as the chief executive officer of Aviva Ireland. The meeting was part of an ongoing process of contact between senior Aviva management and myself. I expressed the Government's concern about the impact on employment and urged the company to seek solutions that minimised the impact on jobs. I also offered it the support of my Department's agencies.

The company briefed me on the ongoing review of the Irish business and the challenges and opportunities that present themselves in the light of market conditions here and organisational changes across Aviva Europe. The company confirmed Aviva remains committed to the Irish market and would seek to minimise the impact on jobs as a result of the review. It also reiterated that no final decisions had yet been arrived at.

IDA Ireland is in contact with the company at both corporate and local level with the intention of mitigating the impact of any potential negative outcomes following the review. IDA Ireland is also in dialogue with the company concerning potential future opportunities around the company's significant international business.

I will continue to keep in close contact with the company as this review progresses.

Peadar Tóibín (Meath West, Sinn Fein)
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Morale is very low among Aviva staff who have been left in a financial and economic limbo. UNITE, the trade union, contacted Aviva management over a week ago but still has had no return contact. Employees are still awaiting the publication of the company's review. Will the Minister agree it is important management consults fully with the employees as soon as possible to let them know what will happen to the company's Irish operations?

It is important to be proactive in this matter. There is no point shutting the gate after the horse has bolted. Has the Minister considered working with Aviva to address other costs which negatively affect the company such as upward only rents and rates? The Aviva Stadium is paid for by the Irish end of the company's operation when it is creating marketing benefits for Aviva Europe. Can Aviva Europe take on some of the stadium's costs?

Richard Bruton (Dublin North Central, Fine Gael)
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I understand and appreciate the anxiety of the company's staff. There has been much media speculation about this matter, which is one of great concern. I urge the company to consult with its staff. The review process is not yet complete according to my clear understanding from the company, but I see no reason for not engaging with staff.

We are taking a proactive approach to this matter and cost issues relating to property have been brought to our attention. In this respect, the IDA will assist the company in any way it can. We will seek the best outcome, but this is a difficult time for the company and its market has soured.

Peadar Tóibín (Meath West, Sinn Fein)
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I seek clarification on the upward-only rent reviews in which the company is engaged. I do not want to be defeatist, as these jobs can be saved even at this point in time. Given the example of Dell, has the Minister a plan B for these workers and has he consulted the European Global Fund, EGF, in any preparatory sense?

Richard Bruton (Dublin North Central, Fine Gael)
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An application to the EGF would be premature at this stage. It depends on the content of any restructuring. For the fund to be involved, outsourcing beyond the EU would be required.

I will not discuss a commercially sensitive matter, but the company has alerted us to some cost issues. We are attempting to assist it in that regard. This matter is not related to the upward-only rent review legislation on which the Minister for Justice and Equality, Deputy Shatter, is working.