Dr. Cyril Roux:

All the public service, including the Central Bank, operates under FEMPI legislation. To ensure internal fairness in terms of staff, new staff are paid on the same pay scales as existing staff who are under FEMPI. We have a public service pay scale but the private sector pay scale has increased. As years go by, the gap increases between the pay the same person can get working for the Central Bank and working in the private sector. The nature of financial regulation means a number of our staff can work either with us or in the industry that we regulate by way of consultation work or in professional services firms or law firms, for instance. It is very difficult for us to sustain the discrepancy. The Central Bank is aware of the matter and has designed an alternative reward model. We know how we could pay our staff, were we put outside of FEMPI legislation. That is all done but the decision to place the Central Bank outside of FEMPI is not for us to make. If that decision were taken, we know how much to pay staff.