Bank salaries - Bring them to heel, Mr Lenihan

THREE weeks from today Minister for Finance Brian Lenihan will introduce a budget that will have a significant impact on virtually every individual in this country.

It will be painful and divisive and most likely it will lead to a number of public protests. It is not at all certain that the Government will survive its introduction.

If it is to satisfy the imperatives of the day — rescuing our economic independence by beginning a process to stabilise public finances — it will require considerable public support. No matter how grudgingly this might be given, it will be required.

At lunchtime yesterday Mr Lenihan had to deal with an issue that has the capacity to fatally undermine whatever support his December budget might enjoy. The issue epitomises the greed and arrogance that has done so much to make the cutbacks expected in December’s budget necessary.

He was drawn into a row over a pay deal for Allied Irish Bank’s new boss Colm Doherty. The bank sought approval to ignore the €500,000 — ten grand a week in the vernacular — salary cap imposed when the State had to use taxpayers’ money to rescue the banks from insolvency. Thankfully, Mr Lenihan has insisted that the limits imposed will be observed. He must not capitulate. Indeed he cannot capitulate if he is to have any hope of having his budget accepted.

Even before the proposal to allow AIB pay Mr Doherty €633,000 — over 12 grand a week in anyone’s vernacular — was made his very appointment gave rise to considerable concern.

It flew in the face of all the assurances that the banks would be cleared of the old, reckless management and the culture that has brought this country to the edge of bankruptcy.

Just as Bank of Ireland did when it appointed insider Richie Boucher, AIB have proposed to appoint the board’s preferred internal candidate, Mr Doherty, as the bank’s next chief executive. Another insider, another one of the lads, gets the leg up. Another victory for the golden circle that not so long ago we were assured did not exist. Now we know it does and that it’s bullet proof too. Even after the trauma of the last 18 months it’s business as usual.

Despite assurances, given after “an extensive international search” that Mr Doherty was the best candidate it is virtually impossible to believe that there was not another at least as impressive.

All of this might be acceptable if AIB had not a shameful history of deceit and collusion, but as the record too clearly shows, the bank has little regard for anything other than its own interests.

Tens of thousands of Irish people will discover just how ruthless AIB and the other banks can be in the next year or so when people are evicted from their homes because they can’t repay mortgages. It is time we learnt to be equally ruthless.

The simple facts are these. Mr Doherty, and Mr Boucher too, only have jobs today because the Government used taxpayers’ cash to rescue their rotten organisations. Because of this the days of the Government asking the banks to do their bidding are gone for ever. Tell them, Mr Lenihan, and if they don’t satisfy you remove them.

If Mr Lenihan stays in politics for the rest of his days he will not deal with an issue on which he would have more public support should he decide to bring these people to heel. As they have shown, their interests are not ours and they must be subjected to the level of control that their pitiful, destructive records dictate.