BANK OF Ireland last night moved to allay trade union fears that its decision to select a new IT infrastructure supplier could result in the loss of up to 200 jobs.

The Irish Bank Officials’ Association (IBOA) yesterday said it was concerned that staff working on a Bank of Ireland contract with HP would lose their jobs when the contract expires early next year.

The IBOA said staff, who transferred from Bank of Ireland to HP when the contract was agreed in 2004, were anxious that a new contractor could decide to use workers based overseas in low-cost economies.

Larry Broderick, IBOA general secretary, said the union believed there was a very important issue of public policy at stake. “The taxpayers of Ireland have made a considerable commitment at an extremely difficult time in order to support Bank of Ireland through its current crisis.

“It would be an unacceptable display of ingratitude if the bank were to repay that support by contriving to export highly skilled work out of this country at a time of mass unemployment,” he said.

Mr Broderick said moving the contract would have a profound impact on the employees and their families, as well as short-changing the State in terms of lost revenues and increased expenditure “not least in the millions of euro that would have to be spent to source replacement industry”.

Bank of Ireland said it was some months into a competitive tender process for the provision of IT infrastructure services and that a decision has now been taken to proceed with a shortlist of two suppliers, IBM and HCL.

A spokeswoman said she expected that, just as when they moved from Bank of Ireland to HP, staff would be employed by the new service provider in line with existing legislation.

A spokesman for Minister for Enterprise Batt O’Keeffe said he would be willing to mediate between the parties on the matter if invited to do so.