THE GREEN Party was light night claiming some of the political credit for the €500,000 cap on top bankers’ salaries announced yesterday. However, Fine Gael claims the Government “bottled it” by setting the limit too high.
Green Party sources said Ministers John Gormley and Eamon Ryan had “pushed hard” at Government level to ensure the €500,000 cap was imposed and bonuses eliminated.
Labour’s deputy leader Joan Burton said the cap was “a step in the right direction” although many would consider the amount excessive and a limit of €250,000 would have been more appropriate.
Fine Gael finance spokesman Richard Bruton said: “I am astonished that Brian Lenihan has decided to allow executives in AIB and Bank of Ireland to continue to draw salaries of €500,000.
“Fine Gael recently called for a salary cap of €250,000 for bank executives in a Dáil Private Members’ Motion.
“Not only did the Government oppose that motion, it has now settled on a cap twice the size of Fine Gael’s proposals.”
Ms Burton, Labour’s finance spokeswoman, said: “While the new ceiling will mean a significant drop in the remuneration packages of senior bankers, they will still be among the best paid executives in the country.
“The Labour Party will be seeking assurances from the Government that these are genuinely the maximum levels of remuneration and are fully taxable.There must be no hidden bonuses and no phoney expenses.”
Green Party senator Dan Boyle said he was pleased the amount set by the Government for the bigger institutions was lower than the figures recommended by the Covered Institution Remuneration Oversight Committee (Ciroc).
“That crazy system of pay and incentives played a major role in dragging Ireland into recession,” he said.
“We in the Green Party worked hard with our Government partners to set a generally lower limit for the bigger banks at €500,000.”
Speaking on a visit to Limerick, Taoiseach Brian Cowen said: “The recovery of the banking sector is critical and fundamental to our national economic recovery as well, so it is important that the whole question of salaries and bonuses was looked at in a detached and comprehensive way over a period of time.
“We now have come to our conclusions on what we think is the best outcome in all the circumstances.”
