Bankers to earn fortunes despite report, says Ross

SEANAD REPORT:THE REPORT on bankers' remuneration would be riddled with loopholes which would afford an opportunity to earn fortunes once again, Shane Ross (Ind) said.

Mr Ross voiced concerns in relation to the statement by Minister of State Dr Martin Mansergh, that the Covered Institution Remuneration Oversight Committee report would provide the basis for action.

He said he was sure Minister for Finance Brian Lenihan would make a statement on the report soon. Attempts by the Opposition to limit earnings of senior bank executives were not successful.

During the debate on the Bill to facilitate the recapitalisation, Paddy Burke (FG) noted that it enabled the National Pensions Reserve Fund to invest only in companies that were listed on the Stock Exchange. In view of this, what was the position of the EBS and Irish Nationwide, for example, he asked. Was it the case that the fund could not invest in them and that the Minister would have to dip into some other pot to get finance for them?

Mr Mansergh said the Government had announced proposals in relation to the recapitalisation of two banks. It also made it known that it was in discussions with other commercial institutions covered by the deposits guarantee, Irish Life and Permanent, EBS and INBS, concerning their capital positions and in relation to a review of the guarantee scheme.

There were a number of options if further funds were needed to recapitalise the banks. The Bill to recapitalise the banks was passed by 25 votes to 13.

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Joe O’Toole (Ind) said he was glad the Government was involved in discussions with the Opposition and social partners and was trying to develop a strategy to grapple with the economic problems. The next three weeks would be critical.

“If the Government can convince the social partners of the need to take tough action, I will champion that course in this House. It is necessary that we should do so, however unpopular it might be.”

Terry Leyden (FF) said the Government should put in place a €10 billion investment or national reconstruction fund. This could possibly be done through Anglo, which would restore some of that institution’s credibility.