The Government has promised to bring forward legislation to cut the pay of public sector workers, including gardaí, nurses and firefighters. All front-line workers will face mandatory pay cuts if they do not sign up to the Croke Park deal. Ministers have made this threat repeatedly for several weeks and we know public sector workers will be considering the matter. It is clear that the Government has no empathy for front-line workers who are operating in difficult circumstances, with cuts to funding for the services they provide. However, there is an abundance of empathy for the senior bankers in financial institutions. Where is the threat to cut the pay of senior bankers? The response to the Mercer report, for which we had to wait two years and which cost more than €120,000, is pathetic.

To what legislation is the Deputy referring?

I am speaking about the threat made by several Ministers to cut wages in the public sector.

Is the Deputy asking about specific legislation?

There is a threat to introduce legislation. Is legislation being promised to cut the pay of senior bankers? Does the Minister think it acceptable that the CEO of Bank of Ireland, Mr. Richie Boucher, would still be earning €612,000, even if he succumbed to the request to cut his pay by 10%? Why is the Government treating senior bankers with kid gloves, while taking the hammer to front-line public sector workers, many of whom earn modest incomes? Does the Minister believe that is the appropriate approach to take to public sector workers, front-line workers in particular, when 6,400 senior bankers in failed institutions are earning more than €100,000? Is legislation promised to reduce bankers' pay?

The House will be aware that agreement has been reached with some of the main public service unions. The negotiations were led by the Minister for Public Expenditure and Reform, Deputy Brendan Howlin. As we move towards the point where the agreement will be put to a ballot among the membership of the unions, they should be given the space to consider it without advice from this House, helpful or otherwise. The unions are well able to conduct their business and should be given the space to make their decision.

There are certain similarities between the situation in the banks and public services. If one owns 99% of a bank, as the State does in the case of AIB and PermanentTSB, parallels can clearly be drawn. The Mercer report which was published last Tuesday was not hanging around for two years. It was commissioned mid-year and we brought it forward rather quickly. Its publication was accompanied by a statement that the banks would be required to reduce their payroll costs across the board by between 6% and 10%. That is in the same space as the requests negotiated with the public service unions. It is moving on again and we will ensure these targets are reached. It is important that the cost base of the banks be cut because the ones with a majority or almost a total State shareholding are not yet profitable. If we are to restore the banks to normality, they will have to be become profitable. If they are to give the credit lines necessary to households and SMEs and support the economy, they must at least have the potential to be profitable.

Bank of Ireland is in a different space. The State has 15% of its shares. As a private bank with a minority State shareholding, we do not have the same direct influence over it. As a shareholder and in accordance with our weight, we make our views very clear. The 6% to 10% reduction in payroll costs is applicable to Bank of Ireland, as well as to the other banks.

I call Deputy Finian McGrath.

With respect, I asked the Minister whether he was willing to impose the same threat to cut bankers' pay as he was to impose legislation to cut pay in the public sector.

I know, but we will come back to the issue.

The Minister completely dodged that question.

The question is on legislation.

I spoke about similarities, but there is no similarity in the Government's approach. It is stating to public sector workers that it will introduce legislation to cut their pay if they do not sign up to the deal, whereas the bankers are asked to reduce their payroll costs and how they do it is up to them.

I have called Deputy Finian McGrath.

It does not matter that they are earning €400,000 or €500,000.

Will the Deputy, please, resume his seat?

I am not threatening anybody. I simply want to get the job done. Everybody knows the cost base of the public service is too high. Everybody also knows that the cost base of the banks is too high. If we leave the rhetoric aside and get on with the job, we could sort this place out.