Sandra McLellan (Cork East, Sinn Fein)
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Question 40: To ask the Minister for Finance if he will provide an update in respect to staff employed at Bank of Ireland and Allied Irish Banks and possible future staff redundancies; his position on this matter and contacts he has had with officials in both banks on the matter. [5664/12]

Michael Noonan (Limerick City, Fine Gael)
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As I have stated previously, the Deputy will appreciate that it is an inevitable, but unfortunate, consequence of the necessary restructuring of the banking system that job losses will arise. Essentially the banks will be smaller operations than previously with the focus being on the creation of the two universal full-service pillar banks with a more domestic remit and a restructured Irish Life & Permanent. To date, AIB have indicated that some 2,000 plus jobs will have to go. Job losses will arise at other institutions where, for example, recently Ulster Bank has announced the planned shedding of some 950 positions on the island of Ireland. I am most anxious that, in this most sensitive of matters, all parties would be treated with the utmost consideration and respect. In that vein, active discussions on the matter are taking place with the relevant institutions.

As I have indicated in a recent reply to a Parliamentary Question on the subject, the redundancy terms previously available in the financial sector cannot be countenanced in the light of the changed and challenging circumstances at the covered institutions. The latest terms to be offered were at IBRC and are more reflective of the terms that will be available at the State supported banks.