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Dáil
‹ Leaders' Questions

Exorbitant bank pensions

Summary

Mary Lou McDonald asks what the Government will do about large pensions paid to former bankers and public figures, arguing that taxation or legislation could reduce them. The Taoiseach says the pensions arise from contractual and constitutional protections, welcomes Eugene Sheehy’s voluntary reduction, and says government appointments comply with existing caps.

The Taoiseach's response to Deputy Martin's question on home help hours vividly reflects the fact that the Government lives in cloud cuckoo land. Those women in west Cork are not alone. Every Deputy could and perhaps should be in direct correspondence with the Taoiseach to set out the thousands of cases of older and disabled people being left in the lurch and abandoned by the Government. The Taoiseach speaks as if he does not realise that the Government has made cuts to this service. They are hurting.

Last night, President Obama was re-elected. I am sure that we all congratulate him. It may interest the Taoiseach to know that he earns an annual salary of $315,000.

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Seán Barrett An Ceann Comhairle Fine Gael

What topic are we discussing? Deputy McDonald can only discuss one topic.

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Does President Obama do home help hours now?

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Seán Barrett An Ceann Comhairle Fine Gael

Are we discussing home help or President Obama?

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Drop the script.

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If I might be allowed.

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Seán Barrett An Ceann Comhairle Fine Gael

No, I will not allow the Deputy.

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Seán Barrett An Ceann Comhairle Fine Gael

The Deputy is entitled to discuss one topical issue.

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We are not allowed to ask questions.

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It is not multiple choice.

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That salary is the kind of money that we in this State reserve for retired bankers and politicians. Last night, we heard the news that the former AIB chief, Mr. Eugene Sheehy, bowed to public pressure and agreed to reduce his pension to a paltry €250,000 per year. This is the kind of money that the average citizen would only see if he or she was lucky enough to win the lotto. What further steps will the Government take to tackle these pensions? Will it ensure that other retired bankers take similar cuts, for example, former directors of AIB, Anglo Irish Bank, Irish Nationwide, Bank of Ireland and Permanent TSB? What about the holders of ministerial pensions? Some are still in full employment, for example, Mr. Pat The Cope Gallagher-----

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Seán Barrett An Ceann Comhairle Fine Gael

Please, Deputy McDonald is over time.

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-----Mr. Alan Dukes, a former leader of the Taoiseach's party, and Mr. Dick Spring.

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What about Sinn Féin's parliamentary salaries from Westminster?

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Seán Barrett An Ceann Comhairle Fine Gael

I thank Deputy McDonald. I call the Taoiseach to reply.

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Why does Sinn Féin not go to Northern Bank?

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The Taoiseach has invited-----

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A Deputy

Go on. Rob a bank.

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-----us to write to him in respect of home help hours and we will do that.

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A Deputy

Robbing banks.

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Seán Barrett An Ceann Comhairle Fine Gael

Deputy McDonald is over time. Will she please resume her seat?

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What about Sinn Féin's pensions from Westminster?

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When will the Taoiseach write to the politicians and bankers-----

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Seán Barrett An Ceann Comhairle Fine Gael

Will the Deputy resume her seat, please? Will she respect the Chair?

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-----in receipt of these exorbitant pensions?

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Some £26.5 million was stolen from Northern Bank.

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Will the Ceann Comhairle ask Labour to respect Deputy McDonald?

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What will the Government do? It cannot intervene to save home help hours and-----

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Seán Barrett An Ceann Comhairle Fine Gael

I will not ask Deputy McDonald to resume her seat a second time.

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-----it cannot intervene to remove these exorbitant pensions.

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Seán Barrett An Ceann Comhairle Fine Gael

Does the Deputy hear me?

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What exactly can the Government do?

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Seán Barrett An Ceann Comhairle Fine Gael

Deputy, I am on my feet. Will the Deputy please resume her seat when I am on my feet? The same rules apply to everyone in this House, including her.

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No, they do not.

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Not to Government Deputies, obviously.

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Seán Barrett An Ceann Comhairle Fine Gael

I will not be bullied in the Chair.

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Tell them to shut up.

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Seán Barrett An Ceann Comhairle Fine Gael

I call on the Taoiseach. I will not be bullied. Deputies should listen to me.

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We will not be bullied either.

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Seán Barrett An Ceann Comhairle Fine Gael

Deputies will respect the Chair. It is the only thing left in this House.

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What about them?

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What about pensions from Westminster?

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Enda Kenny The Taoiseach Fine Gael

About 20% of the population over 65 - that is 100,000 people - receive a home help service and home care from one or other of the range of options that are there. It is not unusual for Deputy McDonald to attempt to compete for populism with the Technical Group. She is at it again this morning.

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That is disgraceful.

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Enda Kenny The Taoiseach Fine Gael

The chief executive of AIB has written a letter to a number of former employees of Allied Irish Banks, not based on their salaries, but based on their responsibilities, in regard to the pensions they receive. I am glad to note that the former chief executive, Mr. Sheehy, has made a personal decision in regard to the level of pension that he intends to draw. These persons - I answered this question yesterday - have been in receipt of pensions under contractual arrangements that I cannot change, that the Minister for Finance cannot change and that, under our constitutional law, are recognised as a property right. It ill behoves Deputy McDonald to come in here and lecture everyone else when the leader of her own party was drawing an allowance for years for a Parliament that he did not recognise.

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Deputies

Hear, hear.

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Seán Barrett An Ceann Comhairle Fine Gael

Deputy McDonald has one minute to ask a supplementary question.

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To sum up, this is a Government that can take home help hours from people-----

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Seán Barrett An Ceann Comhairle Fine Gael

I am sorry, Deputy, but we are discussing salaries.

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----but cannot intervene in these outrageous pension arrangements. It can write people a Dear John letter in the hope that they will voluntarily take a cut. That is the Taoiseach's contention. He cited the constitutional limitations and associated property rights.

That is a familiar tune which the Taoiseach's colleagues in government have been singing for the past year and a half. The Taoiseach knows, or at least he should know, that there are other legislative and taxation mechanisms which his Government can utilise to recoup and minimise these massive pensions. The big question is why he has not done that. I believe it is because he does not want to. He will not write to parents-----

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Seán Barrett An Ceann Comhairle Fine Gael

Can we have your question, please?

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-----or pensioners and afford them the opportunity to take a cut voluntarily. It is mandatory for the little people. The Taoiseach will not step up to the plate and use the instruments available to him to deal with this matter. That is indefensible and disgraceful.

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Enda Kenny The Taoiseach Fine Gael

The Deputy represents a party which for a long time did not recognise the Constitution, the State or the laws of this land. One of the laws of the land, which is still in operation, is the law regarding what pension rights actually constitute. This Government did not draw up, or allow to be drawn up, the contractual arrangements and obligations for extraordinarily high pensions for a small number of personnel in banks. That happened under a previous Administration.

In so far as the appointments made by this Government are concerned, they comply with the capping arrangements in place. I repeat for the benefit of the Deputy that the legal situation is that her pension is also a property right for her if she decides to draw it when she leaves this House or when she is removed from it in due course, which is a matter for the people to judge. It is not a case of the Government being able to say we are now reducing these pensions, because they are contractually arranged with the bank personnel for quite a number of years. Some of them have been in receipt of them.

We have made the point about premium payments and bonuses. Taxation is a matter for the Government to decide in respect of the drawing up of the budget for 2013. It is not a case of the Minister for Finance being able to say "Yea" or "Nay" to anybody's pension and that this is what it will be from now on. There are contractual obligations under a law drawn up, which this Administration had nothing to do with.

As far as appointments made to banks by this Government are concerned, they comply with the approval of the Minister for Finance in respect of the guidelines and caps which have been laid down. That will continue to be the case.

It is not good enough for the Deputy to speak as if she is the only one to represent the little people, as she calls them. I represent all the people of the country. We do not target sectors as she does and as was done previously.

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