Irish Bankers' Union Slams Merger Suggestions

by Caroline Maxwell, Tax-News.com, London

05 July 2002

The Irish Bank Officials' Association, the trade union which represents banking and finance personnel throughout Ireland, has reacted angrily to suggestions made by former Chairman of the Competition Authority, Patrick McNutt that support should be given to a merger between the country's two leading banks, AIB and Bank of Ireland.

Writing recently in the Irish Banking Review, Mr McNutt stated that the expected easing of competition criteria by the Competition Authority could lead to an 'enlightened merger policy' which would allow the Republic's two largest banks to combine forces in order to make a greater impact on the global stage, arguing that:

'If the two main Irish banks wish to become a force in Europe, as financial markets consolidate in the emerging eurozone, a merger may become the sine qua non for their survival as domestic banks.'

However, the finance union's General Secretary, Larry Broderick slammed the former Competition Authority chief's suggestion, accusing him of having a 'vested interest' in the proceedings, and arguing that his views were being used to push the merger as a viable possibility 'without due consideration being given to the implications for staff, consumers, and the independence of the finacial services industry'.

Mr McNutt's proposals also appear to have been poorly received by the wider Irish banking community. Speaking to the Irish Independent earlier this week, the Assistant Chief Executive of Permanent TSB said that a merger between AIB and Bank of Ireland would be 'bad for consumers, bad for their own staff and bad for the wider economy.'

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