Bank of Ireland has been accused of using lockdown restrictions as an excuse to close more than 100 branches in its retail network in Ireland.
A number of opposition Senators hit out at the “cynical” move by the bank and there was also criticism from Government Senators.
Fianna Fáil Senator Timmy Dooley said the Government needs to challenge the planned closure of 103 branches in the Republic and Northern Ireland, including three in Tulla, Kilkeel and Miltown Malbay in his home county of Clare.
He said “it’s hardly a surprise that the numbers going through the doors of the banks have reduced because people can’t go to the bank. They’re not able to travel, they’re told to stay at home except for essential purposes.”
Government Senator Seán Kyne described the bank’s decision as an opportunity for An Post and credit unions to fill gaps banks were creating in day-to-day financial services.
Speaking in the Seanad Mr Dooley said Bank of Ireland’s move to close these branches was an “appalling kick in the teeth” and he questioned the bank’s argument that footfall had fallen by 50 per cent in the branch network and by 60 per cent in branches set to close.
He said those communities had stood behind Bank of Ireland when the State bailed out the lender to protect the banking system but “that’s the reward these communities are now getting from the upper echelons of the Bank of Ireland”.
Before the restrictions were lifted “the bigwigs in the boardroom of the Bank of Ireland have decided to pull the shutters down”.
‘Asleep at the wheel’
Minister of State for Trade Promotion Robert Troy told him that "I too was disappointed to read the news in relation to branches in my own constituency (Longford-Westmeath) and certainly I'll raise the points that you've raised today with the Minister responsible, Minister for Finance Paschal Donohoe."
Labour spokesman on Rural and Community Affairs Sean Sherlock called for Mr Donohoe to intervene to put a stay on the closures as he accused the Government of "talking out of both sides of its mouth on regional development."
“It speaks of revitalising main streets again, but if services as basic as the bank move completely online, there will be no main street to revitalise.”
He also accused the Central Bank of being "asleep at the wheel in allowing these closures".
“The cynical attempt of the Bank to use Covid as cover for these closures is an insult to staff and local communities. Seeing their workers as merely numbers does not take into account what’s happening in local branches throughout the country where bank staff play a fundamental role in our rural economy.
Aontú TD Peadar Tóibín said he had requested that that the Minister for Finance and the Secretary General of that department come before an Oireachtas Committee to explain how they planned to “inject competition into the dysfunctional Irish banking market”.
The lack of competition in banking meant there is now a duopoly and “customers have to accept any decisions these banks make because they have nowhere else to go,” he said.
Mr Tóibín said the move is “also a disaster for rural and regional Ireland that has previously seen banks and post offices closed”.
He said “the Government has to decide once and for all, does it want to turn regional Ireland into a commuter belt for Dublin or will they secure an economic energy in the regions of Ireland”.
Rural erosion
Mr Kyne said he regretted the closures including Ballygar, Oughterard and Dunmore in Co Galway but he welcomed that there would be no compulsory redundancies and also the bank’s commitment to provide additional services through An Post.
The Fine Gael Senator said “it is clear that we need to equip, encourage and enable An Post and credit unions to enhance their financial services”.
He said they should be going beyond basic financial services at this stage and “the retreat of traditional banks is an opportunity for An Post and credit unions to provide day-to-day financial services and products”. They could “fill that gap that banks are creating”.
Fianna Fáil Senator Pat Casey said the decision was part of a constant erosion of rural life and followed the closure of over 150 post offices in recent years.
Fine Gael's leader in the Seanad Regina Doherty said she took some comfort that most branches are self-service locations and she hoped that would minimise job losses.
She said, however, that “we do have to acknowledge changing behaviour” and that people had moved online.
She has asked the Minister for Finance to address the House in a debate on the future of banking in the wake of the Bank of Ireland closures and the decision of Ulster Bank to withdraw from the Irish market.
The Dáil will on Wednesday evening debate the future of banking in Ireland.
