BOI seize funds from Galway Airport

All 13 jobs at Galway Airport could be lost, after Bank of Ireland seized funds from the company's accounts.

It has emerged this week that BOI took possession of funds in the company’s deposits to set off against a loan that, according to majority shareholder Galway Chamber, "has never been defaulted on".

Following the move, Galway Chamber has now said that Galway Airport’s ability to continue as a going concern may have been jeopardised.

On Thursday last, Galway Airport was trading as a going concern and had agreed a clear business plan for its future with its bankers. It had €1.6 million in its bank account with further funds due.

According to a statement from the Chamber, Bank of Ireland seized €1.1 million from the company’s account without notifying Galway Airport and set it off against the company loans which were “up to date, fully compliant and not in default in any way”.

President Declan Dooley said that this unprecedented move by Bank of Ireland could well have consequences should it be applied to any business in Galway.

“This is an extremely worrying development, not only for Galway Airport, but also for the member companies of Galway Chamber and for business as a whole. These actions imply that the bank can seize the cash reserves of any business to set off against compliant loans at a time when businesses are trying to survive in difficult trading conditions.

“As President of Galway Chamber, I am calling on Bank of Ireland to reverse this decision immediately and to return the money to Galway Airport. Further I call on Bank of Ireland and other banks to ensure that they will not raid company cash reserves to set off against compliant loans in this manner.”

Galway West Deputy Noel Grealish also slammed the move, saying the Airport was fully compliant with its loans.

“There are still 13 employees at Galway Airport and until this money was taken from their account, at least six of these jobs were secure until the end of the year. Unless this can be resolved, there is a strong possibility that the airport will have to close with the loss of all 13 jobs.

“Despite redundancies at the airport over the last year, if the airport could remain open with even a small number of jobs, there is a much higher chance that the airport will grow and expand again in the future, bringing back some of the jobs which were lost.”

Deputy Grealish added that BOI should not be allowed to jeopardize jobs and called for immediate action.

“If the airport has to close altogether, there is a very slim possibility that this will happen again. Bank of Ireland was bailed out by the Irish taxpayers and they cannot be allowed to jeopardize jobs like this.’

“This action by the Bank needs to be addressed at the highest level of Government and I am calling for immediately action before it has dire consequences for Galway Airport.”