Noonan refuses to push banks on pay

Despite promises from the Government after the Mercer report that there would be imminent cuts to bankers remuneration, as yet nothing has happened.

In a response to a parliamentary question from Sinn Féin, Finance Minister Michael Noonan said he would not be putting pressure on the banks to come up with payroll savings of 6%-10%: “The cost bases of the banks must be reduced and remuneration costs must come down. While it would not be appropriate or realistic to specify a timeframe for the savings to be delivered, it is obvious that the timely delivery of such savings is critical.

“My abiding mantra in dealing with these matters has been to insist that the normal industrial relations protocols and consultation procedures need to be observed by all participants. I am anxious, therefore, that all the parties to these discussions are afforded the necessary space and time to conduct and conclude these critical negotiations.”

The majority of the banks have chosen to make the cuts through their pension schemes. AIB, PTSB and Bank of Ireland have all submitted plans to the Department of Finance which include pension cuts.

“Each of the banks submitted their outline plans to me by the due date requested. As a consequence of the on-going negotiations – some of which are quite far advanced – it is not possible at this stage to reveal precise individual details bar what has been put into the public domain. In that vein, I can confirm that all three institutions have put forward pension changes to varying degrees as part of their overall responses,” he said.

Mr Noonan paid tribute to bank workers but said some of the cuts that were coming would be tough.

“The Government readily acknowledges the sacrifices and changes made by bank employees to date at all levels... However, there can be no doubt that whatever emerges from the respective talks is going to present some unpalatable measures for those concerned which will require reflection from them and their representatives,” he said.