Dáil Éireann Debate, Wednesday - 18 April 2012
157 Deputy Brendan Griffin asked the Minister for Finance the regulations in place by the banking sector in the use of private firms to carry out the repossessions of machinery and vehicles; and if strict regulations and vetting are applied to the staff of these companies; and if he will make a statement on the matter. [18282/12]
View answerThe Central Bank has informed me that it does not regulate the outsourcing by regulated financial service providers of any functions in relation to the repossession of machinery and vehicles. In terms of any type of agreement between the banking sector and outsourcing firms I wish to advise the deputy that the Relationship Frameworks with the banks provide that the State will not intervene in the day-to-day operations of the banks or their management decisions and it is a matter for the respective individual boards and management to determine and implement operational policy in their organisations.
158 Deputy Jerry Buttimer asked the Minister for Finance since 2008,if there have been any pay cuts implemented for staff at IBRC formerly Anglo Irish Bank, the extent of any such cuts; if there have not been any reductions, his views on whether adjustments should be considered by management at the bank; and if he will make a statement on the matter. [18323/12]
View answerI am advised by the institution that a 20% reduction was applied to the salaries of senior management in the former Anglo Irish Bank immediately post nationalisation. These adjusted lower salaries have remained in place in the organisation for subsequent replacements to those roles. I am further advised that the total remuneration paid to the top 50 individuals in the organisation in 2009 has reduced by 15% as at March 2012. In addition, total staff costs in the organisation have reduced by 48% from end 2008 to end 2011; this includes 6 months of additional cost resulting from the merger with INBS in 2011.
I understand that further reductions in pay levels for individual staff in IBRC (the entity tasked with winding down the former Anglo Irish Bank and INBS) have been considered by the Directors of the Bank and a decision has been reached not to implement cuts at this time. The Bank informs me that this decision not to pursue further pay cuts was based on the reality that staff retention is a critical issue for IBRC and is subject to review in the light of changing circumstances. I understand from the Bank that since nationalisation there has been a 60% reduction in total headcount in the combined Anglo Irish Bank and INBS organisations from close to 2,250 in January 2009 to 919 today.
It should also be noted that IBRC does not operate a performance based incentive plan to retain individuals throughout the remaining wind down period of the entity.
I am informed by the Bank that staff members are being regularly headhunted by banks and other organisations because of their particular and often unique skills in asset recovery. The skills of those individuals who stay with IBRC during its remaining life are integral to the successful delivery of the Bank's asset recovery programme on behalf of the State and, by extension, the taxpayer.
159 Deputy Peadar Tóibín asked the Minister for Finance if he will direct Permanent TSB to come to a resolution with a person (details supplied) to allow them to continue to operate on a site until a new site can be found. [18329/12]
View answerNotwithstanding the fact that the State is a significant shareholder in the institution, the bank should be run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. It is a matter for the individual board and management to determine and implement operational policy in their organisation. Therefore, such matters are solely a decision for the bank. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters.
