Dáil Éireann Debate, Tuesday - 22 May 2018
135. Deputy Pearse Doherty asked the Minister for Finance if a policy in which all State-owned banks work towards paying all their workers a living wage will be committed to; and if he will make a statement on the matter. [22116/18]
Amharc ar fhreagraAs the Deputy is aware Government policy on banking remuneration has remained unchanged since the financial crisis. Extensive restrictions are in place, which, in summary, limit total remuneration for staff in AIB, Bank of Ireland and PTSB to €500,000 (excluding a standard pension contribution). Policy also dictates that bonuses and many other benefits cannot be paid to any staff. This policy impacts c. 23,000 workers across the three banks.
The Deputy will be further aware that I recently acknowledged that it is possible, in the future, that the context for bank pay could change; things are changing in the economy, Brexit is on the horizon and that will likely bring with it more intense competition for talent across the sector.
We are also likely to see more companies moving into Ireland in the coming years, who will not be subject to the restrictions in the way that some of our banks are. With our economy almost back to full employment, the environment in which all of the companies who are based here operate has altered, and will continue to change. It is important that the right policies are in place to ensure a competitive but also a fair playing field.
For that reason, I have initiated a review of bank remuneration policy so that I can determine whether or not the bank pay policy that is in place is fit for purpose.
With regard to your question about a living wage, I have no role in setting general pay levels for staff at the banks as these are commercial decisions for the institutions.
