Bank dividends and wage moderation
Browne questioned whether large dividend increases at Allied Irish Banks and the Bank of Ireland were consistent with wage moderation. The Minister cited lower per-share growth figures and noted that the agreement allowed further pay increases and productivity bargaining; procedural disputes repeatedly interrupted the response.
asked the Minister for Economic Planning and Development if he considers that recent increases in dividends awarded to the shareholders of the Allied Irish Banks and the Bank of Ireland, of 59 per cent and 42 per cent, respectively, are consistent with the spirit of the current national wage agreement, which granted workers a pay increase of 8 per cent; and whether they are in accordance with the Government's policy of encouraging moderation in income increases generally.
Comment on this
: The percentage figures quoted by the Deputy relate to total dividends paid to shareholders; on a gross earnings per share basis, the corresponding figures would be 16 per cent and 23 per cent. In relating them to the development of pay it needs to be remembered that, in addition to the 8 per cent pay increase quoted by the Deputy, the national wage agreement allows for a further 2 per cent after 12 months, and it also provides for locally negotiated increases to a maximum of 2 per cent, and for productivity bargaining. Overall it is expected that after allowance is made for these increases, and account is taken of wage-drift and the carry-over of 1977 pay increases into 1978, average non-agricultural earnings will show an increase of between 14 to 16 per cent in 1978 over 1977.
Furthermore, in comparing dividend payments and earnings, it is perhaps more appropriate to look at the pattern over a few years. The average annual increase in industrial earnings over the past five years was of the order of 21 per cent; during the comparable period the average dividend increases, on a gross earnings per share basis, were 17 per cent for Allied Irish Banks and 24 per cent for the Bank of Ireland.
It would not appear from the development of the two sets of figures that the Government's policy of encouraging moderation in income increases generally is inappropriate or inequitable.
Comment on this
: A Cheann Comhairle, the Standing Order I quoted says that, if such motion be opposed, the Ceann Comhairle shall permit an explanatory statement.
Comment on this
: I do not regard this as a matter of necessity, let alone urgent necessity. It is not in order and I do not accept the proposal.
Comment on this
: I am not opposing; the Chair does not oppose. I am not accepting it. I would appeal to the Deputy in the interests of better order of the House to allow Question Time to proceed.
Comment on this
: On a point of order, have you had a written communication from the Government side saying that the Green Paper would definitely be included in the Adjournment Debate?
Comment on this
: In view of that, would you withdraw your ruling as you were ruling under a misapprehension?
Comment on this
: I said that if the Green Paper is not for discussion in the Adjournment Debate, I will——
Comment on this
: What you said was that "if it was not the subject of the Adjournment Debate". Stick to what you said if you do not mind.
Comment on this
: Whether the Green Paper is to be the subject matter of the Adjournment Debate or to be included in it, is immaterial. Deputies are not only entitled but have a definite responsibility to solicit factual information in order to properly prepare themselves for an intelligent contribution to the debate.
Comment on this
: The Chair never has any ulterior motive. This Ceann Comhairle is not concerned with who is embarrassed and who is not. I am going on precedent and on Standing Orders. This is not the time to press the Chair for an explanation.
Comment on this
: Do you not seriously realise the fundamental importance of the issue we are raising?
Comment on this
: In the history of this House there never was a precedent for questions ruled out of order being discussed in such a disorderly manner.
Comment on this
: We have tried in every way possible to have this matter resolved in an orderly way.
Comment on this
: Are you prepared to review your decision and assure us that the questions will be on tomorrow's Order Paper and will be reached by the Minister?
Comment on this
: I am not, but I am prepared to look at the situation and discuss it with the Members, as I always do, outside Question Time.
Comment on this
: I give every facility to people whose questions are ruled out of order and that is common practice. My predecessor did the same. It was never permitted that the matter would be raised at Question Time.
Comment on this
: A decision has been made now and if the Minister finishes his questions and Deputy Keating's questions are on tomorrow's Order Paper, they will not be answered in this House——