Peter Mathews (Dublin South, Independent)
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340. To ask the Minister for Finance his views on Allied Irish Bank's decision to outsource work and staff from its application and development management teams within its information technology division to a third party service provider; if consideration has been given to the long-term strategic implications for the bank and the economy as a whole; and if he will make a statement on the matter. [22238/15]

Michael McGrath (Cork South Central, Fianna Fail)
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358. To ask the Minister for Finance if his attention has been drawn to plans by Allied Irish Banks to outsource the application and development management teams within its information technology division to a third-party service provider; if his approval is needed for such a decision under the relationship framework he has with the bank; and if he will make a statement on the matter. [22496/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 340 and 358 together.

As the Deputy will be aware under the Relationship Frameworks the State does not intervene in the day to day operations of the banks or their management decisions regarding commercial matters and hence any discussions around outsourcing etc. are a matter for the bank, the staff and their union representatives. Notwithstanding this position, my officials do obviously take an active interest in how the bank's cost base evolves to ensure that the State's interests as shareholder are protected and to ensure that the Government's remuneration policy is enforced. 

The bank has previously indicated that as part of its restructuring plan to reduce costs and increase efficiencies, outsourcing of certain functions would be considered in consultation with unions and affected staff. I have also been informed by the bank that there have been no compulsory redundancies as a result of its recent outsourcing activities. Any staff who transfer under outsourcing arrangements transfer under the TUPE regulations.