Exorbitant bank pensions
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.
Comment on this
Does President Obama do home help hours now?
Comment on this
We are not allowed to ask questions.
Comment on this
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-----
Comment on this
-----Mr. Alan Dukes, a former leader of the Taoiseach's party, and Mr. Dick Spring.
Comment on this
What about Sinn Féin's parliamentary salaries from Westminster?
Comment on this
Why does Sinn Féin not go to Northern Bank?
Comment on this
-----us to write to him in respect of home help hours and we will do that.
Comment on this
What about Sinn Féin's pensions from Westminster?
Comment on this
When will the Taoiseach write to the politicians and bankers-----
Comment on this
-----in receipt of these exorbitant pensions?
Comment on this
Some £26.5 million was stolen from Northern Bank.
Comment on this
Will the Ceann Comhairle ask Labour to respect Deputy McDonald?
Comment on this
What will the Government do? It cannot intervene to save home help hours and-----
Comment on this
-----it cannot intervene to remove these exorbitant pensions.
Comment on this
What exactly can the Government do?
Comment on this
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.
Comment on this
Not to Government Deputies, obviously.
Comment on this
What about pensions from Westminster?
Comment on this
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.
Comment on this
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.
Comment on this
To sum up, this is a Government that can take home help hours from people-----
Comment on this
----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-----
Comment on this
-----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.
Comment on this
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.