MANAGEMENT at Irish Nationwide Building Society is “committed” to recouping the €1 million bonus paid to former chief executive Michael Fingleton, Taoiseach Brian Cowen insisted in the Dáil.
He made the comments as Fine Gael leader Enda Kenny claimed bankers were “thumbing their nose” at the Government and treating the Taoiseach and his office with “utter disrespect”, because of his “complicity in overseeing light regulation or none in the four years” he was minister for finance.
Mr Kenny said the Government seemed “powerless to stand in the face of the juggernaut of bankers at senior level and the manner in which they have got their way”.
Mr Kenny had highlighted the €221,000 paid to Mr Fingleton in his last four months as chief executive and the €1 million bonus he got after the Government’s bank guarantee was introduced.
It was difficult for workers to understand that they were being asked “to take pain in the national interest” in the Croke Part deal “when they see a small number of people deriving massive benefits to which they could never aspire”.
But Mr Cowen insisted the Government was “activating positively and proactively to try to ensure it fixes the system in which it is clear there have been systematic institutional failures with regard to the banking crisis”.
There had been significant changes in the banking system, “including at the top of all the Irish financial institutions”.
Mr Kenny said the Government should instruct the public interest directors at Irish Nationwide to take whatever action was necessary, “including legal action”, to ensure the €1 million bonus was returned, along with the excess salary above the recommendation made by the Government watchdog.
He cited the “grave concern” expressed by Labour Relations Commission chief executive Kieran Mulvey about the effect of the €1.5 million top-up to Bank of Ireland chief executive Richie Boucher’s pension on the Croke Park deal vote.
He said: “If the Government appears powerless to deal with a small number of senior bankers for whom no pain is being taken” and who were operating “business as usual”, it was difficult for workers to understand why they should to take pain in the national interest.
Mr Cowen hit out at Mr Kenny’s attitude and said he wondered “whether it is about maintaining an atmosphere of total negativity here regarding the economy and its prospects and whether that is your priority, rather than trying to see whether the issue can be dealt with”.
Mr Cowen added that the Government sought legal advice from the Attorney General about Mr Boucher’s pension and the Minister for Finance did not have the power to prevent the bank from making a payment to it own pension fund “which it is required to do to ensure the pension fund can meet its liabilities to all staff”.
Mr Cowen said: “I hold no brief for any bank executive or bank in these matters.
“We all recognise the sensitivity about how ordinary people or people in the street will regard this in the context of their own particular challenges and difficulties,” he added.
