Sinn Féin - On Your Side

Almost 3,000 staff at banks earn over €100,000 in pay and perks

20 November, 2012 - by Pearse Doherty TD


Sinn Féin finance spokesperson Pearse Doherty has said that he is “amazed and raging to discover that nearly 3,000 staff, at banks we have bailed out, are still taking home over €100,000”.
Minister for Finance Michael Noonan today detailed that 2,949 staff at the covered institutions are receiving remuneration packages in excess of €100,000. Of these 326 receive more than €200,000; 104 receive more than €300,000; 48 receive more than €400,000 and 27 receive more than €500,000. The figures include salaries, pension contributions and other forms of payment.
Deputy Doherty said:
“Today’s figures released by the Minister for Finance are truly staggering. The scale of the excessive pay culture in the bailed out banks beggars belief. Like most people on hearing this information I am truly amazed and raging.
“This culture of excessive pay and perks in our banks has to stop. This is taxpayer’s money. It is totally unacceptable.
“Today I published legislation that if passed would enable the government to claw back a large amount of this money. 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 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.
“The Government’s claim that they are unable to act on this issue is bogus. The problem is they don’t have the political will. And why would they. They are also beneficiaries of this excessive pay and perks culture.
“Today the Minister for Finance also revealed in a parliamentary reply that 13 Government Ministers are claiming the controversial dual abode allowance. To date a total of €112, 661 has been claimed by these Ministers for 2011. This is substantially more than the amount claimed by the Fianna Fail Ministers in previous years.
“In 2009 Enda Kenny promised to abolish this allowance. In the same year Fine Gael and Labour voted to cap bankers pay at €250,000. It seems that these are just two more of the promises to the electorate broken by Fine Gael and Labour since taking office.”ENDS
DÁIL QUESTION

NO 187

To ask the Minister for Finance the number of staff that are on a total remuneration package including pension payments, allowances and benefits of between €100,000 and €200,000, between €200,000 and €300,000 and €300,000 and €400,000 and the number with more than €500,000 at all of the covered banking institutions, the National Treasury Management Agency and National Asset Management Agency..

- Pearse Doherty.

* For WRITTEN answer on Tuesday, 20th November, 2012.
Ref No: 51068/12

REPLY


Minister for Finance ( Mr Noonan) : The institutions referred to in your question have supplied me with the following information:
Number of staff on total remuneration package (incl pension payments, allowances and benefits of between €100,000-€200,000 Number of staff on total remuneration package (incl pension payments, allowances and benefits of between €200,000-€300,000 Number of staff on total remuneration package (incl pension payments, allowances and benefits of between €300,000-€400,000 Number of staff on total remuneration package (incl pension payments, allowances and benefits of between €400,000-€500,000 Number of staff on total remuneration package (incl pension payments,allowances and benefits of over €500,000
AIB 1,159 85 8 10 0
BOI 1,110 102 32 10 20
PTSB 164 11 4 1 0
IBRC 190 24 12 0 7
NTMA 52 9 4 1 0
NAMA 88 3 2 0 0

Note 1: The data from AIB and IBRC is as of Nov-12, PTSB’s data refers to Dec-11 while BOI data is as of September 30th, 2012
Note 2: BOI has estimated total remuneration by taking base salary and adding 26% as an estimate of potential non-salary benefits such as pension provision and allowances. This estimate is in the absence of individualised assumptions and estimates regarding an individual’s usage of/eligibility for certain potential benefits.
Note 3: NAMA and NTMA figures do not include pension contributions. Pension contributions are not paid to individual employees, they are paid into the pension scheme.
As the Deputy will no doubt be aware the covered institutions have announced plans to reduce staff costs. AIB, BOI, IBRC and PTSB have announced voluntary severance schemes. Further information on these schemes can be found in the interim reports of the individual institutions.

AIB has reduced pay and benefits of higher earners by between 7.5% and 15% in H2 2012; AIB’s defined benefit pension scheme is to close from end 2012 for future service and other long standing staff benefits have been withdrawn. For other staff a pay freeze has been in operation since 2008 and the bank is in discussion with the IBOA to extend this to 2014.
Remuneration costs at IBRC have also been reduced as I disclosed in my response to PQ’s 48607/12 and 48608/12.

As the Deputy will also be aware my Department has engaged Mercer to carry out a detailed review of remuneration across the covered banks. The results of this review are expected by the end of the year.

* For WRITTEN answer on Tuesday, 20th November, 2012.
Ref No: 51026/12

REPLY


Minister for Finance ( Mr Noonan) : The position is that the dual abode allowance was introduced as and from the income tax year 1966/67. The allowance was granted under Rule 3 of Schedule 2 to the Income Tax Act 1967, now section 114 of Taxes Consolidation Act 1997.


Section 851A of the Taxes Consolidation Act 1997, which was inserted by the Finance Act 2011, placed on a formal statutory basis the long-standing and accepted obligation of the Revenue Commissioners to treat all taxpayer information confidentially. For reasons of confidentiality, the Revenue Commissioners cannot reveal the identities of the claimants of the dual abode allowance.

Statistics relating to the number of persons who availed of the dual abode allowance are available from the tax year 1998/199 onwards and are as follows:
Year Number of Claimants Cost
1998/1999 19 €160,570
1999/2000 19 €142,134
2000/2001 10 €79,943
2001 Short tax year no details available
2002 18 €95,051
2003 19 €109,540
2004 13 €63,448
2005 18 €93,471
2006 18 €107298
2007 16 €88,335
2008 19 €74,770
2009 14 €74,996
2010 11 €86,665
2011 13 (to date) €112,661

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