FG: Government showed 'gross ineptitude' in AIB bonuses saga

Fine Gael has today accused the Government of "gross ineptitude" regarding its handling of the AIB bonus scandal.

The Cabinet is meeting around now to discuss legislation which will force the bank to withhold €40m in bonus payments to staff.

Minister for Finance Brian Lenihan wrote to AIB bosses last night, telling them the Government would not fund the recapitalisation of the bank if the controversial bonuses were paid.

Fine Gael's Deputy Leader Dr James Reilly says the decision is a victory for public outrage, but he criticised the Government's handling of the affair.

“I’m delighted that the public have been vindicated in their outrage about this, and that these bonuses have not been paid

"But it's very difficult to understand how the Minister could come out and tell us that what was impossible last week, according to himself and his Government, and illegal, is suddenly legal and possible today.

"I think it’s been gross ineptitude.

"This Government have created crisis after crisis and they’ve spent the last two years trying to undo them."