Finian McGrath (Dublin North Central, Independent)
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237. To ask the Minister for Finance further to Parliamentary Question No. 262 of 16 June 2015, his views on correspondence (details supplied) regarding outsourcing to a third-party service provider by an Irish bank; and if he will make a statement on the matter. [25877/15]

Michael 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 the bank has not at this stage confirmed any agreement to outsource additional IT Services to third party providers.  However, staff working in the Application and Development Management teams have been advised that contracts are expected to be finalised with two suppliers, in early July.

Should any such decision be confirmed then affected staff will be informed and the bank will enter into a full process of information and consultation with employee representatives, as required both by law and in line with engagement principles agreed with the IBOA.

The bank has also advised that there are no planned compulsory redundancies as part of this activity.

I have been informed by the bank that the companies involved in the proposed outsourcing are establishing Delivery Centres in Ireland (in consultation with the IDA) and both organisations are committed to expanding their operations in Ireland to service their Global clients.