The only ones shouldering debt burden are taxpayers

Burden sharing was part of the 2011 election manifestos of FG & Labour.

The bondholders and the banks would share in the repayment of the bank bailout and both parties stressed that pay capping for senior bankers would be enforced.

To-date, the only people paying the burden of banking debt is the Irish taxpayers via levies and taxes. Over €7.5bn was made available to banks last year to deal with distressed mortgages — but in reality very little relief was passed on to the borrowers. In fact the banks continue to increase their variable mortgage rates allied with a general increase in banking charges.

Banks are not lending monies to small businesses or even individuals with good credit rating. Re-possession of family homes continues while those at the top of the banking fraternity receive massive pay and bonuses.

AIB recently announced that it had transferred €1.1 billion from its balance sheet into its pension fund and former heads of AIB & Bank of Ireland walk into the sunset with annual pensions of over €500,000 each.

The CEO of the now defunct Irish Nationwide Building Society received a total pension fund of €32 million. The current banking heads are breaching the cap in pay and bonuses laid down by this government — but they carry on regardless.

The Minister for Finance informs us that he is legally bound to continue with these payments to irresponsible and failed bankers. Surely, he can introduce legislation that will give him the power to deal with pay and bonuses of former and current heads of our banks? Is taxation not an option?

One former AIB banker has decided to now take only an annual pension of €250,000 – a gesture, but a minuscule step in the right direction. Pensions should not be more than twice the average industrial wage and this should apply for bankers, politicians, and public servants. A universal pension scheme should be the mantra of all Irish people.

Ireland is borrowing €67.5 billion and to date the government has given €64 billion to the banks who have passed €64 billion directly back to senior bondholders. Under the terms of the bank guarantee, the Irish people will be asked to repay €124 billion to senior bondholders. This is the reality of government policy and there is no doubt we are doing it the Frankfurt way. Meanwhile, the cronyism between bankers and politicians continues to flourish under this FG/Labour government.

J Lyons

Bandon

Co Cork