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Banking Sector Remuneration

Dáil Éireann Debate, Tuesday - 21 May 2013

Tuesday, 21 May 2013

Questions (117, 188, 189, 190, 191, 192)

Jonathan O'Brien

Question:

117. Deputy Jonathan O'Brien asked the Minister for Finance the responses he has received from banks following the Mercer report; the proposals each bank has made to reduce its remuneration by 6-10% including a breakdown of their proposals regarding cuts to each of those earning less than €100,000, of those earning between €100,000 and €200,000, of those earning between €200,000 and €300,000 and of those earning more than €300,000. [23954/13]

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Pearse Doherty

Question:

188. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the Mercer report on banking pay and his calling for 6% to 10% reductions in remuneration, when such savings will be delivered. [24093/13]

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Pearse Doherty

Question:

189. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the Mercer report on banking pay and his calling for 6% to 10% reductions in remuneration, if such reductions are to be effected through cutting headcount or individual remuneration. [24094/13]

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Pearse Doherty

Question:

190. Deputy Pearse Doherty asked the Minister for Finance further to the publication of the Mercer report on banking pay and his calling for 6% to 10% reductions to indicate the way he will ensure such reductions are delivered and if there will be ongoing monitoring of remuneration on a periodic basis. [24095/13]

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Pearse Doherty

Question:

191. Deputy Pearse Doherty asked the Minister for Finance in respect of the Mercer report which he commissioned in June 2012, which was published on 12 March 2013, and his call to the banks to deliver proposals to him by the end of April 2013 detailing their plans to deliver 6% to 10% savings in remuneration, if he will confirm if he has now received proposals from all relevant banks, and if not, if he will confirm which banks have not delivered proposals. [24096/13]

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Pearse Doherty

Question:

192. Deputy Pearse Doherty asked the Minister for Finance further to his call to banks to deliver proposals by the end of April 2013 to save 6% to 10% on remuneration if he has now considered those proposals, if he satisfied that the proposals are sufficient to deliver 6% to 10% savings; and if he will make a statement on the matter. [24097/13]

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Written answers

I propose to take Questions Nos. 117, and 188 to 192, inclusive, together.

I can confirm that the three State supported banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested by the Government. Those plans are being evaluated by my Department currently. It is not possible at this stage to reveal precise individual details bar what has been put into the public domain. I can confirm that all three institutions have put forward pension changes to varying degrees as part of their respective overall responses.

I am constrained as to what I can say presently due to commercial sensitivities and perhaps, more critical at this stage, industrial relations concerns as the normal protocols continue and need to be respected and observed by all parties. This is something I have advocated throughout this process. I am anxious, therefore, that all the participants in these discussions are given space and time to conduct these critical negotiations.

Accordingly, I would encourage all sides to engage in these discussions proactively through the appropriate forums in view of the serious and critical consequences for all concerned. In this context, the Government readily acknowledges the sacrifices and changes made by bank employees to date at all levels and recognises that this has been achieved without major industrial unrest in what is a critically important sector.

It follows that, at this stage, it would not be appropriate or realistic to specify a timeframe for the savings to be delivered. However, in view of the fact that the three institutions continue to be loss making the timely delivery of such savings is critical to their viability and to the future employment prospects of their employees.

There is on-going monitoring of costs and implementation of and adherence to policy, including remuneration, with the three banks. This is achieved through a variety of measures such as compliance certification, monthly management meetings with the respective institutions, annual published reporting by them and parliamentary oversight. All three institutions are in compliance with the present Government policy on remuneration which includes, amongst other matters, a remuneration cap and a prohibition on the awarding or payment of bonuses.

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