Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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131. To ask the Minister for Finance if he is aware of plans by Allied Irish Banks to outsource work and staff from its application and development teams within its information technology division; his views that this is a worrying development for customers, staff and the economy in view of the potential loss of domestic jobs and skills and the fact that outsourcing in these areas almost certainly contributed to the major information technology systems failures seen recently in Ulster Bank; and if he will make a statement on the matter. [25312/15]

Fergus O'Dowd (Louth, Fine Gael)
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134. To ask the Minister for Finance his views on a matter (details supplied) regarding Allied Irish Banks; and if he will make a statement on the matter. [25343/15]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 131 and 134 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 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.

 I have been informed that AIB has not at this stage confirmed any agreement to outsource some of its technology services in Application and Development Management teams to a third party provider. Should any such decision be confirmed, then affected staff will be informed immediately and AIB will enter into a full process of information and consultation with employee representatives, as required both by law and under engagement principles agreed with the Irish Bank Officials Association (IBOA).