UUP opposed to possible sale of Ulster Bank

The Ulster Unionist Party has called on NatWest Bank not to sell Ulster Bank to an Irish financial institution.

In a statement issued at the request of Northern Ireland's First Minister, Mr David Trimble, UUP MP Mr John Taylor has voiced the party's concerns about the possible sale of Ulster Bank to an Irish bidder.

Mr Taylor stated: "The Ulster Unionist Party would prefer - if Ulster Bank has to be divested by NatWest - it be either sold to a larger British or European bank and, failing that, it should be floated on both the London and Dublin stock exchanges."

Following the unanimous decision of the UUP, the party has made its concerns known to the NatWest chairman, Sir David Rowland, he said.

The UUP's central concern is the prevention of the possible closure of Ulster Bank's head office in Belfast and the subsequent loss of jobs, according to Mr Taylor.

"Any amalgamation of the Ulster Bank with an Irish bank would obviously involved a major loss of banking jobs in Northern Ireland due to rationalisation," he said. "Even more serious is the possibility of the closure of the Ulster Bank head office in Belfast and the centralisation in Dublin of the head of fice services for the two banks which become amalgamated."

The UUP views the sale of Ulster Bank to an Irish bank, such as Irish Life & Permanent or Bank of Ireland (which have made a joint bid to NatWest), as a backward step for the organisation. At a time when banks in Europe are amalgamating into larger banks, it is difficult to accept the transfer of Ulster Bank from a larger British bank to a smaller Irish one, according to the statement.

The possibility also raises concerns on the grounds of competition in the Northern Ireland banking market.

"Should Ulster Bank be amalgamated with the Bank of Ireland, then the issue must be considered by the Fair Competition Authority, as the problem of a monopoly in banking within Northern Ireland would have increased," Mr Taylor said. "The Ulster Unionist Party would refer the matter to the appropriate authorities and the Department of Trade and Industry."

Mr Taylor added that his party was increasingly concerned about the future ownership of Ulster Bank, given Sir David's refusal to discuss the matter with it. Mr Taylor said he was disappointed at Sir David's reply to date.

The UUP is fully supportive of the campaign by the Irish Bank Officials Association in Dublin to safeguard Ulster Bank jobs in Northern Ireland if the bank is divested by NatWest.

Analysts suggest the UUP's comments will not have any influence on NatWest's decision about the sale of the bank, although concerns about the possible loss of business which could follow a change of ownership may affect its market value.

NatWest is currently considering a number of bids for Ulster Bank from Irish, British and European banks.