Denis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

6. To ask the Minister for Jobs, Enterprise and Innovation the steps he is taking to secure jobs at the MBNA site in Carrick-on-Shannon, County Leitrim; and if he will make a statement on the matter. [12226/14]

Denis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

While the sale of the Irish credit card business in Carrick-on-Shannon to AvantCard (Apollo) has secured more than 200 jobs in the town, the failure to have a long-term strategy on the UK credit card business is leading to a shedding of jobs in Carrick-on-Shannon. Two years ago 400 people were employed in managing the UK credit card business but that number has decreased to approximately 200 people. I want to know from the Minister what is happening to secure those jobs and to secure additional investment in Carrick-on-Shannon.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The position regarding the potential developments at the two operations which formerly formed part of the original MBNA-Bank of America facility in Carrick-on-Shannon is essentially unchanged over recent months. The former MBNA credit card processing facility in Carrick-on-Shannon now comprises two operations. First, a new operation called AvantCard was established following the purchase of part of Bank of America’s credit card portfolio by Apollo Global Management. This operation employs approximately 250 staff who manage the Irish card customers. These staff transferred from Bank of America to AvantCard (Apollo) under the EU transfer of undertakings regulations on 13 March 2013. This was a very positive development and provided more certainty regarding this part of the business. The second operation remains in the ownership of Bank of America and employs approximately 200 people who manage the credit card customers located in the UK. The process regarding the possible sale of this UK credit card business remains ongoing. Bank of America continues to look for a buyer for this unit.

On another positive note, Apollo has acquired the entire building in the town and has leased office space back to Bank of America. We welcome this investment in Carrick-on-Shannon by Apollo.

My priority is that any decision taken by Bank of America will have minimal impact on employees at the Carrick-on-Shannon operation and will ensure jobs are maintained at the facility. I emphasised this when I met senior executives of Bank of America in their headquarters in Charlotte, North Carolina. The IDA is in regular contact with Bank of America management in Dublin and with the parent company in the US to monitor developments. The IDA met senior executives of Apollo in London in September last where the transfer of the Carrick-on-Shannon facility and staff to Apollo and further investment opportunities for the group in Ireland were discussed. The IDA also keeps in touch with Apollo in Carrick-on-Shannon and held discussions just last month with the new manager of the AvantCard operation there. The IDA will remain in contact with the companies and will continue to highlight the strengths of the Carrick-on-Shannon operation to a broad range of potential investors.

Denis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

The MBNA Bank of America-Apollo operation in Carrick-on-Shannon is not only a local employer but a significant regional employer. As the Minister said, he continues to highlight that to potential investors. In the past two years, however, there has been only one visit to County Leitrim supported by the IDA and four visits to County Roscommon. Is it not more important at present to try to hold on to what we have? In that context, originally Bank of America said that it was moving out of its international credit card business because its intention was to focus on its core business. It pulled back from that in regard to the UK credit card business and has expressed its intention to dispose of it, but this limbo that has been created, from the initial announcement to the current situation, has led to significant job losses in terms of the operation of the UK loan book in the interim.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Clearly, any decision by Bank of Ireland in America of this business is one that it takes. We take every opportunity to seek to ensure we protect the employment there. I met senior executives of Bank of America only a few months ago to again take the opportunity to stress that. We make every effort to promote the employment package in Carrick-on-Shannon and to try to protect those jobs but ultimately it is the company that will decide the timing of sales and that decision.

In respect of the wider IDA regional development, we recognise that generally the midlands and that area has been a difficult one and one of the decisions taken this year, as I indicated, was to build in Athlone. That is the first time in many years the IDA has started to build facilities. It is based on our belief that there is a competitive edge in the region and that we can build there.

Denis Naughten (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

I thank the Minister for his response. It is great to see the development in Athlone but the development there is in a completely different sector. It is a long way from Carrick-on-Shannon. That is not of much reassurance to the communities in the west and the north west, or to the community around Carrick-on-Shannon or to the employees. Can the Minister provide some assurance to the employees and businesses in Carrick-on-Shannon regarding the long-term job prospects for that UK business? Can he clarify if it is still the intention of Bank of America to dispose of that particular operation as an ongoing concern? Perhaps he could throw some light on company's intention? Is it trying to sell the loan book or sell the business in Carrick-on-Shannon as an ongoing operation?

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will take a final response from the Minister.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Clearly, I would have to say that from our discussions with the senior executives of Bank of America, they have been very positive, very well disposed towards the workforce and very pleased with the quality of work that is done there. They want to retain that. The Deputy will note that during recent years, although having announced their intention to sell, they have stuck with the business and continue to operate successfully.

Clearly, that signals their commitment to Carrick-on-Shannon but they are in a commercial world in which they make decisions and they continue to look to sell the loan book. Our determination is to ensure no stone is left unturned in making sure that whatever decision is taken, the town is part of the decision. That is what we seek to guarantee. We have worked with Bank of America staff on this and their intentions have been positive towards the people of the town. They know the relationship that has been built there and they have a great level of commitment but we continue to work with them. I cannot give guarantees.

The only reason I mentioned Athlone was the Deputy raised the wider issue of the IDA Ireland role in respect of the region.

Luke Flanagan (Roscommon-South Leitrim, Independent)
Link to this: Individually | In context | Oireachtas source

It is only about 70 miles away.