Christopher O'Sullivan (Cork South West, Fianna Fail)
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465. To ask the Minister for Finance if his attention has been drawn to specific closure timelines and redundancy, security and pension options for staff at a bank (details supplied) scheduled for closure; and if he will make a statement on the matter. [14832/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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The NatWest Group (NatWest) announced on Friday, 19 February last that it intends withdrawing from the banking sector in the Republic of Ireland and it will gradually wind down its Ulster Bank business.

NatWest concluded that Ulster Bank would not be able to achieve an acceptable level of return for shareholders and have decided to begin a phased withdrawal over the coming years.

It is anticipated that Ulster Bank’s withdrawal from the Irish market will take place over a number of years and I would expect that matters such as redundancy, security and pension options will be addressed by NatWest in due course. However, I do welcome NatWest’s commitment to seeking solutions where:

- Customers and colleagues are well supported;

- Job losses are minimised with no new compulsory redundancy departures this year;

- Stability is maintained in the sector; and

- NatWest’s withdrawal from the Irish banking sector is achieved in an orderly manner. 

As part of this process, NatWest confirmed that it is negotiations with Permanent TSB and other strategic banking partners in relation to certain retail and SME assets, liabilities and operations.  I also announced that it is negotiation with AIB in relation to the sale of a c. €4bn portfolio of performing commercial loans, and that staff wholly or mainly assigned to this loan book will transfer with the loan book. NatWest and AIB have signed a Memorandum of Understanding in this regard.

These announcements signal a potentially important development for the Irish banking sector. However, NatWest highlighted that, at this stage, these discussions have some way to go before final transactions are agreed. NatWest, Permanent TSB and AIB have confirmed that they will provide further updates to the market as negotiations progress in this regard.

The Deputy will be aware that I have engaged with Ulster Bank, its parent company, NatWest and the Financial Services Union (FSU) prior to this announcement. In all of these engagements, I strongly emphasised the importance of timely communication with customers, staff and other stakeholders in relation to strategic decisions regarding Ulster Bank.  I also met with the FSU after the announcement and I have committed to further engagement with the FSU in relation to this issue.

I understand, that there are approximately 2,800 staff employed some of whom are located in Northern Ireland. Whilst the management of staff matters, including staffing levels, is entirely a matter for Ulster Bank and any counterparty who acquires its business, I would expect all stakeholders to be very sensitive in relation to the needs and rights of staff. This includes full compliance with European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003 (TUPE Regulations), and honouring all agreements in place between the bank and staff representative bodies.  In addition, I would expect these entities to engage with staff representative bodies as appropriate.