Outrage as four National Irish Bank branches to close in County Cavan

Danish owned National Irish Bank (NIB) is to close 25 branches nationwide including four in Co. Cavan at Virginia, Bailieborough, Shercock and Kingscourt. The branch in Virginia will be merged with the bank in Navan, while the other county branches will be merged with the existing National Irish Bank in Cavan town. The Kells branch will also be merged with the bank in Navan. NIB, which has 58 branches in total, plans close 25 outlets and merge them into neighbouring locations. This news follows in the wake of the announcement by Cavan Credit Union that it is to close its sub offices in Belturbet, Ballinagh and Killeshandra next April. It also follows revelations that An Post is to shed 1,300 jobs across all areas of the business by 2012 due to a drop in the volume of mail of 10%. Two county councillors John O'Hare and Shane P'O'Reilly are outraged at news of the NIB closures and are calling on the bank to reverse the decision. Cllr. O'Hare said the Government should intervene to stop these banks being pulled out of towns like Shercock. Cllr. O'Reilly said it was a "sad day" for the county and pledged to speak to the Oireachtas members with a view to having this decision overturned. NIB chief executive Andrew Healy insisted that plans to close branches and cut 150 jobs were "a local management initiative", rather than a direction from Copenhagen. However, he added that it had the full backing of their parent company. "The banking sector in Ireland is on life support," he said. "Banks have to react by reducing costs and amending their business models. We are taking these actions to ensure that we have a long term future." Mr. Healy added that the planned closures were "a signal that we're not trying to compete on every high street". Less than 10% of NIB customers visit branches more than once a month, he said, as the majority use online banking to carry out transactions. NIB's voluntary redundancy scheme is offering staff six week's salary per year of service, capped at two years' salary. Mr. Healy also confirmed that the bank would offer an early retirement option for staff over the age of 55. The package is at the lower end of the scale offered by banks over the past year. Cllr. Shane P. O'Reilly said he said he could not understand how a bank could be pulled out of a thriving town like Virginia, which will be soon the first town you encounter on the new M3 motorway. He said it is vitally important to have the support of financial institutions, apart from the Credit Union. This is diminishing towns that are endeavouring to do their best to beat the recession and shopping trends, contended Cllr. O'Reilly. He added that the closure of these four banks will effect thousands of account holders, many who would have been banking at these locations for decades. The closure of local banks also has an adverse effect on local organisations and voluntary groups who have accounts in these institutions. "Banks are trying to save money and have no regard for the morale of the people. Now there is a possibility that more post offices will close and as a consequence the heart is being ripped out of local communities," said Cllr. O'Reilly. Cllr. John O'Hare said there was a lot of anger on the ground in Shercock as the news of the bank closure became known, just months after services there were downgraded to three days a week. "It is not acceptable that NIB can walk away from a community and leave it without a bank. It is a 45-minute drive to Cavan town," he said. It will have a major effect on the businesses in Shercock. "Naturally if people have to travel to Cavan town or some other town to do their banking, they will also do their shopping there. This will be a major blow to the people of Shercock that has supported the bank down through the years." He added that it will be a serious inconvenience to senior citizens who do not have access to transport. Cllr. O'Hare added that he had no doubt that there is enough business in Shercock and the surrounding area to sustain one bank in the town and make it viable.