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LAST UPDATE | 18 Feb 2021
LEO VARADKAR HAS told the Dáil that the Government will explore all options if NatWest Group decides to wind down Ulster Bank in the Republic of Ireland.
NatWest had been carrying out a strategic review of its operations in the Republic of Ireland for a number of months.
Last night, the Irish Times reported that a decision is set to be made this evening with a formal announcement expected tomorrow morning when the UK group announces its full-year results for 2020.
Sinn Féin finance spokesperson Pearse Doherty raised the matter at leader’s questions this afternoon.
He said one option available to the government would be to leverage its shareholding in other banks to create a “third force” to safeguard competition within the market, which is dominated by Bank of Ireland and AIB.
Permanent TSB has long been considered a prime candidate for a merger with Ulster Bank.
“The State remains a key player in the Irish banking sector, with a 14% stake in Bank of Ireland and a majority shareholding in both AIB and Permanent TSB,” Doherty said.
“The government must now look at how these pillar banks and Permanent TSB could play a lead role if the worst comes to pass tomorrow, offering some degree of security to mortgage holders to businesses to personal customers and to workers.”
Asked by the Donegal TD if he would support the creation of a “third force” in Irish banking to compete with Bank of Ireland and AIB, Tánaiste Leo Varadkar said, “that is something that I support and something that government supports.
“And if it’s possible to develop a solution on those lines, that’s something that we are exploring and want to explore.”
‘Difficult and deeply troubling’
There has been an influx of calls from Ulster Bank mortgage holders looking at options to switch to another lender, mortgage brokers have said.
It comes as it appears likely that the bank will exit the Irish market and slowly wind down its operations over the coming years.
Ulster Bank employs roughly 2,800 people in the Republic of Ireland.
Earlier this month, the Financial Services Union described a meeting with the CEO of the bank as “difficult and deeply troubling”. It also called on the Finance Minister Paschal Donohoe and the Central Bank to “make urgent statements about the situation”.
“If NatWest decides to exit the Irish market, any solution needs to involve the maximum protection for customers, for jobs and the branch structure,” the general secretary said.
“There is a lot going on at the moment, we understand that, but this issue cannot be allowed to slip under the radar. A decision is coming, and it is coming fast – action is therefore needed now.”
This morning, brokers at MyMortgage.ie said that customers are assessing their options ahead of the expected wind down of Ulster Bank’s operations.
Its head of credit Joey Sheahan said: “Although the future of Ulster Bank is still unclear, even if they do decide to exit the Irish mortgage, they will still have a duty of care to current customers and obligations to fulfil in that regard, so mortgage holders should not be worried or anxious.
“That said, it would be prudent to look at this time as a chance to review your current position mortgage-wise – primarily, what rate you are paying, and how this compares to what is currently being offered in the market.
Although Ulster Bank’s possible departure from the Irish mortgage market would not be a positive development in the Irish banking sector – particularly, from both a competition and an employment perspective, the uncertainty surrounding Ulster Bank’s future could at least turn out to be a beneficial wake up call to mortgage holders who are paying rates in excess of what they could get elsewhere.
Ulster Bank is part of the NatWest group based in the UK. NatWest has not yet confirmed the closure of its operations in Ireland.
Paschal Donohoe was told by Ulster Bank in October last year that “no decision [had] yet been taken” on the future of the bank’s operations in Ireland.
Donohoe told Ulster Bank that staff, customers and other stakeholders “must be informed properly about any decisions being made”.
He had said previously he was “very concerned” at the reports of Ulster Bank’s expected closure.
— Additional reporting by Ian Curran
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I’ll never go back to an office full time. What was I thinking spending 90 minutes stuck in city traffic one way in, working a full day, sometimes having to stay late, only to spend 90 minutes in traffic on the way back home.
It added unnecessary stress to my life that was deemed ‘normal’. I refuse to go back to that way of living.
@Madra: completely agree.. why sit in traffic when you can use that time to work at your desk at home and even go for a little run before work. Going for a run or sitting in your car for 1 hour 20 think I know what I’d chose.
@Madra: At least this pandemy at this merit, having time to think and reflect about things you put in the back in your mind otherwise.
Ideally I’d love 4 days from home and 1 in the office but i’d take 3 days at home and 2 in the office
As long as it doesn’t have leading questions to get the ‘people want to go back to the office’ view like some other reports and surveys ran around the place recently have gone with. It has to be remembered that this hasn’t been a ‘WFH Experiment’ experience it has been a ‘WFH during a Pandemic’ one. Previous surveys all seemed to focus on the social aspect of working in an office which people then latched onto as being ‘the thing they missed’ – without any survey factoring in that nobody can do anything social at the minute. It would be fantastic if the ‘experiment’ went on for six months once things opened up again and then the surveys were put out.
If I could maybe get blended where I’m doing WFH Friday’s and Monday’s and then in the office Tuesday to Thursday’s, like in my old job I’ll happily take that. I simply don’t have a permanent office or work area set up for WFH on a full-time basis, even now its a pain most days to get screens and connections for the laptop set up on the living room table every morning and then take it all away every evening to eat. Plus to be honest, I am sick to the back teeth of poxy zoom and video calls, the novelty was fine for a few months last year, but once we had to do any kind of team training etc, it’s not as effective as being able to ask questions in person…..but everyone will have a different story or opinion on WFH I guess
@Tarraing Mo Liathróidí: Why not set up a home office in your back garden?
@Locojoe: other than the garage, which is already full, there is nowhere practical without me spending a fair amount of money i don’t have to do it, and to be honest I miss seeing actual work mates in person and going to lunch with people instead of sitting on my own doing it via zoom
Cant wait to get back to the office! Big desk, multiple monitors, task chair, coffee, snacks on tap, free lunch, socializing.
@Z Exotic: Most of us have to pay for our lunches & snacks so it’s not that exciting to us.
Like a lot of things in life there are good bits and bad bits of WFH, for me, the good bits of WFH far outweigh the bad bits, by a considerable margin.
As a working mother with young kids I hope that I can wfh at least 60 percent of the time. Not having to pay for afterschool means I’m actually earning a wage, my kids are happier to be home after school, I can drop them and pick them up. When they are sick I’m not scrambling around trying to find someone to mind them or take off work using annual leave where my colleagues have to take on my work.
@Bleurgh: Not have a go at you personally, but isn’t this one of the issues with WFH from an employer perspective ? They are paying for time at the desk, not time spent babysitting, tending to sick kids, etc. I get that most people would be able to juggle the work and household stuff, but it’s bound to have an impact.
I did not have the option of working from home. But I’d welcome the opportunity to try a 4 day week.
have your say