Taoiseach Brian Cowen has told the Dáil that the customers of Bank of Scotland (Ireland) will be looked after and not disadvantaged by the decision of the bank to close its branch network in Ireland, with the loss of 760 jobs.
Mr Cowen told the House that that the bank was not covered by the state bank guarantee, and that the decision to close the Halifax branch network was a reflection of the economic and banking situation here.
Fine Gael leader Enda Kenny asked what the Government now proposed to do to introduce choice and competition in the banking sector. Mr Kenny said we could not afford to return to the 'cosy cartel of Bank of Ireland and AIB'.
Labour Party leader Eamon Gilmore asked Mr Cowen if Bank of Scotland (Ireland) had proposed amalgamating with other institutions in the State.
He expressed disbelief that the Government was only notified of the proposed job losses yesterday, when the banking system had been central to political considerations for the past year.
The Taoiseach said that Finance Minister Brian Lenihan and the Central Bank monitor banking operations on an ongoing basis.
Meanwhile, a senior trade unionist has said the decision by the Bank of Scotland (Ireland) to leave the country will be opposed.
UNITE's regional officer Brian Gallagher said the union still believes that there is a role for the bank in the Irish economy. He said its experience in lending to small and medium businesses is second to none.
He added that Bank of Scotland (Ireland) should have held off on a decision to close Halifax banks until it was seen if a third banking force, entailing a merger between Bank of Scotland (Ireland), Permanent TSB, the EBS and Irish Nationwide, could have been achieved.
Mr Gallagher also said that he would not rule out any form of action in the union's fight to salvage the jobs.
