Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Regarding the scenario that is on my mind and that I believe will grow in the time ahead, I will pick IT as an example. My decision yesterday provoked a debate. I understand why and I have a duty to engage in this debate. It tends to be seen through the prism of bankers' pay in the context of people who are already earning a lot of money and who the public may feel will now gain very large bonuses. I understand the reason for that image given the terrible difficulties we went through and that too many are still going through.

However, another way of looking at this is through the prism of those who work for banks as opposed to those who may perform senior banking functions. If we look at the pay rates in our banks, 48% of staff in our three banks earn less than €49,999, while 75% of staff earn less than €75,000. Let me be clear - €75,000 is a very good salary and well above the average levels of salary in our economy. However, for 48% of people to earn less than €49,999 reminds us of the wage structures in our three banks. I will use the example of one person who has the skills to work in IT or risk, about which Deputy Doherty correctly inquired earlier, given how important it is to this legislation. At the moment, the only three banks that are not in a position to offer variable pay are also the large employers and the banks that hold a very large amount of deposits. Let us take the example of somebody who has just completed an apprenticeship in IT and gets two job offers. Until yesterday, this person would have got one job offer from AIB, PTSB or Bank of Ireland in which he or she would have no option to earn variable pay in the future or a bonus. This person will get another option from any one of a number of other very large banks that employ an awful lot of people here and where variable pay and bonuses constitute a standard element of how people are paid. This is the reason I made a difficult decision that will take a lot of explaining. I want to be in a position to ensure that this person will at least consider working in a bank that is holding the deposits of ordinary Irish people and businesses and possibly be able to have a full career within them. My concern is that in the absence of that decision, it would become harder and harder for that to happen.

That is at the core of the debate that I know my decision has provoked. I know why the public associate this with the very large bonuses of the past and the harm that was done. Over 40 banks are registered in this country, of which only three are not in a position to offer variable pay to those carrying out roles that matter to the ability of these banks to function. While this will be portrayed as affecting those at the top, the groups I have in mind are the groups referred to by the Deputy and listed by me. I want to ensure that somebody earning €40,000 who has been working in AIB, PTSB or Bank of Ireland for a few years will decide to develop his or her career in that bank rather than go to another very large employer - thank God, we have them here - that is in a position to offer these benefits and where we would lose that expertise.

If I look at what has happened as we have tried to migrate staff over to AIB, Bank of Ireland and PTSB from the two banks that are leaving the country, I can see that we have not been successful in getting the numbers of people into those banks that I would have expected. This is the hard reality I have to contemplate in making the case to Government in respect of this decision.

This leads on to the two points put to me by the Deputy. I very much would call on the banks to engage with their staff on this decision. I would expect that would happen anyway but I hope that engagement happens in a timely and ordered way. I know recent pay agreements have been reached in our banks regarding the next 12 to 18 months so I know the unions and bank management will engage in respect of the consequences of the Government's decision.

While I cannot control who gets what because it is up to the employer to make that decision, I very much want to see the decision I made offering a benefit to the 48% of people earning less than €50,000 or the 75% of people earning less than €75,000, which I acknowledge is a good wage, who are critical to these large employers in our economy having the ability to be stable and grow in the future. They are the people I want to see receive the greatest benefit from the Government's decision.