Thursday, February 11, 2010
THE Government was "asleep" when Bank of Scotland (Ireland) was considering closing branches with the loss of 750 jobs, the Dáil heard on what was described as "a bad day" for the country.
The Labour Party said it was "incredible" that the Government only found out about the job losses hours before the bank made the announcement on Tuesday.
Fine Gael said there could be thousands of more job losses in the sector "based on allegations now in circulation" if more international banks pull out of Ireland.
The opposition were reacting to Taoiseach Brian Cowen, who told the Dáil the Government became aware of the issue when a redundancy notice was sent in to the Department of Enterprise, Trade and Employment on Tuesday.
As around 760 bank workers joined the 435,000 already unemployed, Mr Cowen said: "While this major announcement of job losses by the bank is a matter of concern and regret for all of us, it reflects the economic and banking realities as they exist here."
Labour leader Eamon Gilmore said it was "incredible" that the problems at the bank were not on the radar of the Government.
"In a year when banks have been the centre of the political agenda, no minister or department was in contact with this bank with regard to its intentions," he said. Mr Gilmore said the bank’s chief executive Joe Higgins had told staff the closure of branches was under consideration since last summer and that he had hoped to avoid it by exploring other options.
"I interpreted what he said as meaning the bank was involved in some kind of discussions with Government in respect of the ‘third force’ arrangement for an amalgamation of banks," said Mr Gilmore.
"However, it seems from what the Taoiseach has said that there were no discussions at all with the banks.
"Was the Government asleep while this bank was considering withdrawing from retail activity and closing its branches?" he asked.
Mr Cowen said the strategy being devised by the bank was "a matter under consideration by the bank itself". He said the Department of Finance and the Central Bank "monitor the banking situation on an ongoing basis". But that "this credit institution is not part of the state guarantee".
Fine Gael leader Enda Kenny warned of the loss of competition and choice for consumers if Bank of Scotland leaves Ireland.
"We cannot return to the old days of the cosy cartel that operated between Bank of Ireland and Allied Irish Banks," he said during Leaders’ Questions.
"Based on allegations now in circulation, has the Taoiseach had any indications that there might be thousands of additional bank job losses because of other international banks pulling out of this country? These are serious matters and they require the immediate attention of Government," Mr Kenny said.
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