Written answers

Wednesday, 17 June 2015

Department of Finance

Banking Sector Staff

Photo of Anthony LawlorAnthony Lawlor (Kildare North, Fine Gael)
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79. To ask the Minister for Finance if he is aware of Allied Irish Banks' plans to outsource work and staff from its application and development management teams within the information technology division to third party providers; if he is confident that any such move would not pose a risk to key areas such as payment processing and online banking, as was demonstrated by failures in Ulster Bank; the assurances he will provide that jobs will be protected in the bank's plans to outsource this work; and if he will make a statement on the matter. [24064/15]

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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97. To ask the Minister for Finance his views on the planned outsourcing of the application and development management section of the information technology department in Allied Irish Banks; his views regarding the outsourcing of a key sector of the Department that deals with core functions of the bank's operations; if a risk assessment has been carried out on the outsourcing to the bank's operations; his further views on the consultations with unions and staff; his views on the matter of outsourcing of staff in the bank; and if he will make a statement on the matter. [24205/15]

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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98. To ask the Minister for Finance further to Parliamentary Question No. 340 of 9 June 2015, if he is aware that previous outsourcing two years ago has resulted in the redundancy of all those Allied Irish Banks staff, except three or four persons, and that it is this experience that is causing concern regarding the latest outsourcing proposals; and if he will make a statement on the matter. [24219/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 79, 97 and 98 together.

As I have previously stated under the Relationship Frameworks the State does not intervene in the day to day operations of the banks in which it holds investments or their management decisions regarding commercial matters and hence any discussions around matters such as outsourcing are a matter for the bank, the relevant staff and their union representatives. Notwithstanding this position, my officials do 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.

In the case of previous outsourcing arrangements the same TUPE regulations would also have applied to the staff affected.

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