Written answers

Wednesday, 18 April 2012

10:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 203: To ask the Minister for Finance if it is the case that in the region of 2,500 staff will leave AIB; if it is the case that in recent months a number of temporary staff have been employed and that a number of recently retired senior managers have been re-employed; and if he will make a statement on the matter. [19084/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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AIB employed approximately 14,500 people (full-time equivalents) at the end of 2011, and is currently seeking to implement a voluntary redundancy scheme to reduce the number of employees by approximately 2,500. Talks have been taking place between Allied Irish Banks and the Department of Finance in relation to the severance programme.

The Bank's policy in relation to recruitment, be it temporary or full-time positions, is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, the bank is run on a commercial arm's length basis as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF.

However, the Bank has informed me that it continues to hire staff where it has gaps in its skills and expertise, or where the Bank needs to provide additional resources in high demand customer facing areas. Many of the resources will be on a temporary basis to support the stabilisation of the Bank as AIB implements its change programme. A small number of retired senior managers (less than 20) have been re-employed on temporary contracts to cover gaps in the Bank's skills and expertise where this has not been readily available from the market.

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