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

The following is what I thought I heard the Deputy say. In fact it is what the Deputy said. He said a few minutes ago that he would be okay with bonuses for workers in our banks who are earning up to €100,000. That is important because it indicates that, given the Deputy's commitment to overthrow capitalism, even with that commitment his statement shows how the sands and background to this debate have shifted.

The reality for people who are in the three big retail banks we have left, after two others decided to leave our country, is that the majority of them have the ability to go and work in other financial service providers or other parts of our economy in which variable pay is the norm. I am telling the Deputy in all sincerity, having considered this matter and my Department having considered this matter intensely over the past year, that this will further weaken the ability of these banks to grow and keep staff. The reason that is a concern for me is it matters to the people who work for them and it will matter to our economy. What the Deputy has said is a significant intervention in this debate.

The Deputy made some claims on the super tax and the €500,000 pay cap. I am not proposing a change in the super tax. I made it explicitly clear yesterday that variable pay and bonuses above €20,000 are not allowed. In any situation in which, despite the policy of the Government, they did happen, the super tax of 89% applies to them. I am not removing that tax and have no intention of removing it.

On the €500,000 pay cap, as I am sure the Deputy will know, that only refers to Bank of Ireland. It does not refer to AIB or PTSB. I thank Deputy Barry for the contribution he has made because hearing a Deputy of his political outlook say he is open to a discussion on variable pay shows how things have shifted. I am sure that will influence the debate in the time ahead. I am only repeating what Deputy Barry has said.