Michael McGrath (Cork South Central, Fianna Fail)
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Question 62: To ask the Minister for Finance if he or the Central Bank of Ireland has received proposals for branch closures from the covered institutions; if he will provide a breakdown of the number of closures proposed for each covered institution; his views on these proposals; and if he will make a statement on the matter. [36070/12]

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 [and branches will be closed]. Essentially the banks will be smaller operations than previously. The Central Bank of Ireland cannot disclose this type of confidential information under Section 33ak (1)(b)(i) of the Central Bank Act 2003.

As you know, operational decisions remain the responsibility of the boards and managements of the institutions. Notwithstanding the fact that the State is a significant shareholder in the covered institutions, I must ensure that the banks are run on a commercial, cost effective and independent basis to ensure the value of the banks as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF and the Relationship Frameworks which define the nature of the relationship between the Minister for Finance and each bank. These Frameworks were published on 30 March 2012 and can be found at; http://banking.finance.gov.ie/presentations-and-latest-documents/ .

However, the individual banks have supplied me with the following:

PTSB:

As part of the restructuring plan and in order to achieve viability PTSB will announce a restructuring, including branch closures, shortly. The Department of Finance will review the plans with PTSB in the immediate future. Furthermore, it would be inappropriate to comment further in advance of staff consultation on the matter.

BOI:

The Minister has not received proposals for branch closures from Bank of Ireland.

AIB:

As part of a strategic plan to improve viability, AIB is currently in the process of repositioning its physical branch network. This will inevitably involve a reduction in the number of branches across the country as the Bank targets cost savings. AIB is expected to form a closer relationship with An Post, to compensate for the loss of customer access to branches. I am informed that AIB is working to finalise its branch closure plans, with an announcement likely in the near term.

IBRC:

IBRC has actively reduced the number of properties being used by the Bank for its day to day operations. The Bank closed offices in Newcastle (UK) and Chicago (USA) in 2010, in Banbury (UK), Düsseldorf, Edinburgh, Jersey, Leeds and Vienna in 2011 and Wigmore Street, London and New York in 2012. The offices of the former Anglo Irish Bank and the former INBS in the Isle of Man were also disposed of in 2011 as part of the Banks' deposit transfers which took place on 25 February 2011. In addition, IBRC also put the entire former INBS branch network up for sale in October 2011. This portfolio, comprising a total of 49 branches is in the process of being sold and good progress is being made. As IBRC is a Bank in work out, the ongoing premises requirements of the organisation will continue to decrease over time.