Barry Cowen (Laois-Offaly, Fianna Fail)
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I imagine the Minister is well aware that Ferbane is a small town in west Offaly. For almost a century it has had a branch of Ulster Bank at its centre. Long before RBS took over Ulster Bank or it grew in size and strength the people of Ferbane supported their local branch of Ulster Bank. They kept their savings in it; they borrowed from it to build their homes and finance their children's education. Local businesses were given their first start by it and stayed with it. The people of Kilcormac and Shannonbridge who previously used sub-offices have also stood by the bank. They, too, gave credence to the commitment given by Ulster Bank not to close the branch in Ferbane.

Some 4,000 people have availed of branch services. Now, unfortunately, this history has been placed under a dark shadow by a corporate decision by executives based in the vast sprawling building on George's Quay in Dublin. For them, the struggles of a small midlands town can be reduced to an accountancy exercise. However, the real impact of the branch closure will not be felt on asset sheets at Ulster Bank's headquarters; rather, it will be felt on the streets of Ferbane and countless other rural towns in County Offaly and throughout Ireland where, unfortunately, many bank branches are dying. The plight of Ferbane and the disregard shown towards the town and rural Ireland by Ulster Bank reflect a broader attitude which I fear is evident in the way in which the Government treats rural affairs at times.

The squeeze on small schools, the closure of 140 Garda stations, the threats to post offices and their contracts with Government Departments and the crippling burden of commercial rates are bleeding Irish towns dry. Fianna Fáil has highlighted these issues time and again. It is not as if we have remained on the sidelines; we have offered alternatives. I produced a document entitled Streets Ahead, which puts forward a road map by which Irish towns could be assisted in moving again.

The Government has continually failed to address the crux of the issue. What we are witnessing in the recovery that has been spoken about is the emergence of a fragile, two-tier recovery, where economic growth is confined to a few areas on the east coast and the larger cities while the rest of the country continues to suffer. We must ask ourselves if that is what we want for the country. Addressing the crisis which has been unfolding before our eyes like a slow-motion car crash must become a priority for the Government, businesses and corporates.

A situation emerged over the Christmas period at a shopping centre in Tullamore whereby the anchor tenant in the Church Road shopping centre, Dunnes Stores, opened its fire door onto the car park to allow customers easier access to the store, depriving other shops in the centre of valuable passing trade. It did so in defiance of the planning legislation that exists and the permission that was granted initially. That is just one example of the situation we are facing, when large businesses and corporates take advantage of their position and do not recognise the community spirit and ethos of many rural towns.

I ask the Minister and Fine Gael to step up to the plate and confront this crisis. The banks also need to recognise their important social role. The people of this country, as the Minister knows only too well, have stood by the banks in the past. It is now time to repay the favour, irrespective of the fact that Ulster Bank was not one of the banks to benefit from the assistance mentioned earlier.

Tomorrow the people of Ferbane and its hinterland will march on the midlands headquarters of Ulster Bank in Athlone. That march will provide them with the opportunity to inspire other towns, and the Government hopefully, to stop the rot and try to breathe life back into rural communities. I hope the Government recognises this and that the Minister will use his good offices and influence to impress upon the CEO of Ulster Bank, Mr. Jim Brown, to meet representatives of the community. Those representatives have already met high-placed officials from the bank and appreciate those meetings and the efforts made to try to assist the community in terms of continuing to exist in the absence of banking facilities. It should not stop there, however. I implore the Minister to use his influence to ensure that the CEO meets the community and hears their concerns directly. They were given a commitment in the past, not only locally, but by way of the charter of RBS itself, which declared that the bank would not leave any town in which there was no other bank in operation. That commitment has been thrown out of the cot at this stage.

Michael Noonan (Limerick City, Fine Gael)
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I thank the Deputy for raising this important topic. I am aware of the concerns of Deputy Cowen and other Deputies as Ulster Bank moves to implement the closure of a number of branches and sub offices around the country. Indeed, this was the subject of a previous topical issues debate last summer when the bank announced these closures. A number of representatives have been in contact with my officials about this important issue.

I must be very clear that this is a commercial and operational matter for the Ulster Bank, a wholly-owned subsidiary of the Royal Bank of Scotland group, and it would not be appropriate for me as Minister for Finance to become directly involved in the number of branches that the bank may decide to close or the selection of which branches are to close. That said, I fully understand the concerns of the bank's customers at the closures and the additional expenses that they will incur if they have to travel additional distances to avail of banking services. I also regret that there may be job losses involved. However, Ulster Bank has said that the redundancies will be volunteer-led and workers will be invited to redeploy to other areas within the bank.

As with other banks in Ireland reducing the number of branches, there are a variety of factors impacting on the selection of branches to close. In addition to income and costs, banks will also assess the level of usage of each branch and whether the premises are owned or leased in the decision making process. I should also point out that it has been public knowledge for quite a while that Ulster Bank is seeking to reduce costs across its network and that branch closures were on the cards. The bank had previously announced its intention to reduce its network and what is happening now is that a previously announced decision is being implemented. However, I also understand that Ulster Bank is in discussions with An Post in relation to a potential link-up to retain basic services in some locations. If this can be arranged, it would certainly be a positive development, ensuring that valuable financial services continue to be available at local level to personal customers and businesses.

Ulster Bank has said that it is reducing the number of branches in response to changing customer behaviours, in particular the use of mobile and online banking. This will hopefully lessen the burden for many people. On a more general point, Royal Bank of Scotland has publicly committed to building on Ulster Bank's current position to make it a compelling challenger bank to the main domestic banks and focus firmly on the customer and I have previously welcomed this. The continued presence of a viable and active Ulster Bank in the Irish market will be important in fostering competition for banking services. It is vital that businesses and consumers have a range of banking options available when using financial services and accessing credit, all of which will become increasingly important as the economy recovers.

I have previously said that I expected that the restructuring of the banking sector in Ireland and the recovery of the economy will present opportunities for the entry of new market participants. We have also said that competition is central to a functioning financial services market. Royal Bank of Scotland's commitment to Ireland can be seen as a recognition of the recovery of the Irish economy and a vote of confidence in the opportunities that supporting this recovery offers to the providers of financial services. The Deputy may also be aware that KBC is opening a number of branches around the country and this is very much to be welcomed. I also welcome the fact that Ulster Bank confirmed that it currently has no further plans to reduce its branch numbers in 2015.

Barry Cowen (Laois-Offaly, Fianna Fail)
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I thank the Minister for his attendance and his response. I join with the Minister in acknowledging the efforts of other Deputies in the House, particularly my constituency colleague, Deputy Marcella Corcoran Kennedy who has been to the forefront in seeking to address this issue in a manner favourable to the community. The Minister said that 14 branches are due to close, bringing the total number of closures to 26 or 27 since this process began. However, Ferbane is one of only two towns - Croom in Limerick being the other - which will have no other financial institution or bank remaining after the Ulster Bank closure. I am merely pointing out the commitment made by the parent company, RBS, that it would not leave any town without any banking facilities. I acknowledge that Ulster Bank is in negotiations with An Post with a view to providing banking facilities in those areas where its branches will close. However, I am also conscious that An Post in another location in Offaly is finding it very difficult to find a new provider to work on its behalf or to enter into a contract with it to provide financial services. One of the issues that has arisen is the size, scale and security requirements of any building, which must meet the guidelines as laid down by An Post. With the best will in the world, the facility that is currently available in Ferbane may not be meet the criteria. I am conscious that Ulster Bank has been in the same location in Ferbane for a very long time - up to a century I believe. The building is the bank's own and is a fine premises, located in the heart of the community. That building may be of some use to the community if the worst happens and the branch is not retained.

The implementation of this process has not met with approval in the community in so far as it has not been given time to explore other options and ensure they are in place when the fateful day arrives and the bank closes its door. People in the locality have shown resilience, dedication and commitment. Having met other impediments in recent times, including the reconfiguration of Bord na Móna and closure of workshops in that realm, the community has emerged stronger and now has a development association that is second to none. Furthermore, local people, through their own fund-raising efforts, have established an industrial park and facilities for business start-ups. This initiative shows their dedication and commitment to their community and its hinterland. They have been assisted by the West Offaly Partnership and funding provided by Bord na Móna and the ESB.

Local people are not immune to change or challenges. They simply want fair play and a level playing pitch. They seek a meeting with the person with responsibility for overseeing Ulster Bank at his convenience and in his preferred location. They want to be sure in their own minds that their community has had a fair crack of the whip and wish to place on the table their sentiments, feelings, commitment, dedication, history and association with Ulster Bank. It is against that background and having made the same request to the Taoiseach previously that I ask the Minister to use his influence to impress upon the chief executive officer of Ulster Bank the need to meet representatives of the community and public representatives to allow such a discussion to take place. We will deal with the consequences thereafter. This is the only role the Government will play and the only offer of assistance it can provide given that Ulster Bank is a commercial entity in its own right, one which has not had the benefit of capital input by this Government or the previous Government. In recognising that, I also reiterate my earlier comment on the position facing Ferbane and similar towns in rural areas. The Government must be seen to be more proactive in seeking to assist such communities in re-emerging from the recent crisis in a better way. To this end, I ask the Minister to consider in earnest the document that was produced.

Michael Noonan (Limerick City, Fine Gael)
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I again thank the Deputy for raising this issue. As with other banks on the island, Ulster Bank experienced insolvency problems. Its parent, the Royal Bank of Scotland Group, is under the regulatory control of the Bank of England rather than the Irish banking system. The bank had its problems and at one point some years ago, it looked as if it would pull out of Ireland completely. Such a scenario would have been a great loss, especially in the northern half of the country, both in Northern Ireland and the Republic of Ireland.

We had some dialogue, including with Mark Carney, the Governor of the Bank of England, and we got assurances that the Bank of England would support the continuation of Ulster Bank services on the island. Ulster Bank will continue to trade as a competitive bank in Northern Ireland and the Republic of Ireland. However, because it had the kind of problems with which we are very familiar in the other banks, it began to cut its cost base and, in doing so, decided to close some branches.

To give the Deputy the overall picture, in June 2014, Ulster Bank had 79 branches in Northern Ireland. This figure declined to 74 in December 2014 and it is projected to fall further to 64 by March 2015. Ulster Bank had 135 branches in the Republic of Ireland in June 2014. This figure declined to 125 in December 2014 and it is projected to fall to 111 in March 2015. Notwithstanding this, Ulster Bank remains a strong retail bank trading on the high street. Of its original 214 branches North and South, 199 remained in December 2014 and the bank hopes the figure will settle at 175 in March 2015, with no further closures after that date. The bank will maintain a strong network.

On the specific case of Ferbane, it is always difficult when a bank that traditionally provided services leaves an area. This is hard on customers, residents and individual businesses. I see the Deputy's point of view and I will respond to his request and the requests of other Deputies in his constituency by asking my officials once more to contact senior figures in Ulster Bank requesting that they engage with the community and, in particular, further explore whether Ulster Bank can enter into an arrangement with An Post to provide alternative services for the people of Ferbane and other towns from which it is withdrawing banking services. I again thank the Deputy for raising this important issue, which deserves to be highlighted.