Seán Fleming (Laois-Offaly, Fianna Fail)
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Question 66: To ask the Minister for Finance in relation to Allied Irish Bank, in view of the large number of job losses announced, the amount being spent on their renovation programme of the bank's headquarters in Ballsbridge, Dublin; and if he will make a statement on the matter. [17389/12]

Michael Noonan (Limerick City, Fine Gael)
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The Bank has informed me that AIB is relocating operations from across Dublin to its Bankcentre in Ballsbridge in order to reduce costs. In anticipation of becoming a smaller organisation, in August 2011 AIB commenced a programme to withdraw from five leased locations and is currently adapting its Bankcentre in Ballsbridge to cater for the centralised functions.

The bank has adopted a tighter space management policy to optimise the use of its headoffices. This, too, will contribute to a more efficient and less expensive operation.

As a result of this programme, there will be an approximately 20% reduction in the space occupied by the head office functions and a consequent reduction in costs. The forecast reduction in the cost of operating premises is €60m in the 2012 – 2016 period and €18m per annum thereafter. (2011 values)

The adaptation of the Bankcentre premises does require investment and the construction required has been procured on a competitive basis and carried out by Irish construction firms. The value of the contracts is commercially sensitive and privy to the Contractors and the Bank.