Michael Mulcahy (Dublin South Central, Fianna Fail)

I want to address amendments Nos. 2 and 4. I agree with certain of the sentiments in both these amendments, but the wording is such that I would be almost compelled to vote against them. Deputy Burton should remember it is not just high-flying executives of the banks who have share options but hundreds, if not thousands, of ordinary employees in the banks who are motivated to work harder and more efficiently by these share options. It would not be fair to punish ordinary employees and say they cannot have any share options as a result of what has happened. Therefore, I would not be in a position to support the proposal in this regard.

I agree with Deputy Burton that the time has come, in a general sense, to consider the higher levels of remuneration in the banking system. In the United States, in particular, we have witnessed obscene levels of remuneration. Although I agree with the Deputy's sentiment, this is not the time or place to address this matter because it requires further review. Her proposal is not well thought out enough and we should, therefore, oppose it.

On amendment No. 4, I do not really disagree with the proposed new section 2(1). However, I do disagree with the proposed section 2(2). One does not want to strangle the banks. People buy bank shares in the first instance to have a pension on their retirement. A dividend for a common or garden investor is an essential part of the investment. One will seen that one financial institution recently cut its dividend in half to do just what Deputy Bruton is proposing, that is, to recapitalise. Of course it makes sense but it does not make sense for the Dáil to prescribe to banks what they can and cannot do. The Minister indicated clearly that the financial institutions concerned will be paying for the guarantee, which is the correct approach. The Minister stated — I accept his word on this and it will become evident in the future — the credit institutions will pay in proportion to the strength of the guarantee. This is the way it should be done and it is totally wrong of Deputy Bruton to suggest that the payment of dividends be more or less suspended for the period in question. Doing so could have the effect of destabilising the share price of the company on the international markets. I ask him to reconsider his proposed amendment.

See this speech in context