Written answers

Thursday, 25 June 2015

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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90. To ask the Minister for Finance if he is aware that Allied Irish Banks is currently developing proposals to outsource work and staff from its Application and Development Management teams within its Information Technology Division to a third-party service provider; that the teams play a vital role within the bank's daily operations, including payment processing; if he will consider it detrimental to the public interest for such outsourcing to proceed, especially if the contract was awarded outside the State; the representations he has made to the management of the bank regarding this matter; and if he will make a statement on the matter. [25544/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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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).

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