‘Stark reminder’ of challenges facing country

THE Aviva job losses are a “stark reminder” of the need to make Ireland more competitive and reduce the cost base, the Taoiseach said.

While staff were given the news of the redundancies yesterday, the Taoiseach was answering leaders’ questions in the Dáil, which mainly focused on the Government’s response to the decision.

He said it was an “awful day” for workers in the insurance company and that he shared the empathy with the rest of the Dáil about the news.

Speaking to the media afterwards, Minister for Jobs, Enterprise and Innovation Richard Bruton said the job losses were “a painful legacy of the domestic economy after the property crash”.

He said wages were not to blame but instead put it down to a 30% drop in the domestic market and the impact that had on the company and its business here.

“The major issue here is the reduction of the scale of the market,” he said.

“It’s not just about cost competitiveness.”

Speaking in the Dáil, Mr Kenny said the country had a “long road to travel” to put competitiveness “at a level where we can protect jobs”.

He said: “This is a pretty stark reminder of what it is that Government have to do in facing the competitiveness challenge that we have here for a range of companies and for employment in general.”

Responding to questions from Fianna Fáil leader, Micheál Martin, the Taoiseach said he had not met with the chief executive of the company since rumours of the job losses first emerged in September.

But Mr Bruton said he had daily meetings with management in recent days.

Mr Martin said it was a “shattering morning” for the workers, their families and communities in Dublin, Cork and Galway.

“I don’t get a sense of any real engagement by the Government with the company to try to either restructure or avert some of those job losses,” said Mr Martin.

He asked if the news “flagged” a more serious issue in the insurance industry. But Mr Kenny said: “I have had no contact from any other insurance company in this regard.”

Sinn Féin leader Gerry Adams said the chief executive of Aviva, Andrew Moss, was paid £1.8 million (€2m) last year and that “the entitlements of Aviva workers are being set aside to sustain the excesses of elites like Mr Moss”.

The Department of Education will examine if the European Social Fund can be accessed for the workers.