A committee representing angry First Active agents is to meet the company today to discuss plans to close its agency network throughout the State. The closures are part of the cost-cutting measures currently taking place at the troubled bank.

The agents contend that the bank has not made adequate severance offers to the 85 agents who operate First Active deposit-taking and mortgage offices.

Sources representing the agents told The Irish Times that the maximum offer of compensation was three months' commission, while the agents have sought two years' commission as a more appropriate figure.

At one stage, the company offered to reappoint 18 of the 85 agents as mortgage brokers - the offer was made to some of the agents who had built up large mortgage business - according to agent sources. The company subsequently said that this offer was open to all brokers, the source said.

Agents are said to be incensed about reports quoting the company as stating that its restructuring and cost-cutting plans were on target. First Active is also closing 25 of its 76 branches and seeking 175 staff redundancies.

First Active said yesterday that it was proceeding as planned with the closure of its agency network. The bank said it was currently in negotiation with the agents on terms and declined to discuss these terms. The network is expected to be closed by end-March/mid-April.

The company wants to cut €13 million off its annual cost base in order to compete more effectively against new competition in its core mortgage and deposit-taking business.