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Doherty publishes bill to curb excessive pay and pensions for top bankers

20 November, 2012 - by Pearse Doherty TD


Sinn Féin finance spokesperson, Pearse Doherty TD, today published a Bill that seeks to curb excessive pay and pensions received by top bank chiefs in the covered institutions. The Bill applies a levy of 20% on bank executive’s earnings in excess of €150,000 per year and 45% on earnings in excess of €250,000 per year.
The effect of the levy when combined with PAYE and PRSI would be to reduce the excess pay by 65% and 90% respectively. The Bill also seeks to impose a 99% charge on pension payments in excess of €100,000 per year for all bank officials who retired from the covered institutions after the introduction of the banking guarantee in 2008.
Deputy Doherty said:
“In recent weeks Sinn Féin have had a series of revelations of the grotesque pay and pension packages of current and former senior bank officials in the covered institutions. Many of these individuals played key roles in the financial and economic crash.
“Across the state ordinary people have been angered by the lavish pay-outs received by these bankers. That taxpayer’s money has been used to save these banks and is currently being used to pay the pensions and salaries has added insult to injury.
“The Bill I am publishing today seeks to change all of that. The Bill applies a levy of 20% on bank executive’s earnings in excess of €150,000 per year and 45% on incomes in excess of€250,000 per year. The effect of the levy when combined with PAYE and PRSI would be to reduce the excess pay by 65% and 90% respectively.
“The Bill also seeks to impose a 99% charge on pension payments in excess of €100,000 per year for all bank officials who retired from the covered institutions after the introduction of the banking guarantee of 2008.
“The effect of the Bill would mean that former and current bank executives would see their incomes drop significantly. However they would still be earning far more than the average person.
“We don’t need to pay Certus €120,000 to undertake a review of excessive bankers pay. In 2009 Fine Gael, Labour and Sinn Féin all voted for a proposed cap on banker’s pay of €250,000. The only party not to support the proposal was the party of Micheál Martin and Michael McGrath.
“It is my intention to have this Bill debated and voted on in the Dáil as soon as possible. I do not accept the government’s claim that its hands are tied on this issue. My Bill is based on the already existing levy on bankers bonuses introduced in 2010.
“It is time for all TDs to stand up and be counted on this issue. Either they are in favour of bankers and former bankers getting obscene pay and pensions at the expense of the taxpayer or they are not. How they vote on my Bill will make this very clear.”
ENDS

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