Brian Lenihan Jnr (Dublin West, Fianna Fail)

Remuneration in banks is an important issue. It is the Government's belief that current levels of remuneration at senior banking level are not commensurate with the size of our economy or the institutions therein. As I announced last week, total remuneration for all senior executives in the banks benefiting from state capital — AIB and Bank of Ireland — will be reduced by at least 33% and no bonuses will be paid to these senior executives and no salary increases will be made in regard to 2008 and 2009.

The report of the remuneration oversight committee is expected shortly. The committee's role is to consider the remuneration plans of all six institutions covered by the Government guarantee. I will be writing to the chairman of the committee, Mr. Eddie Sullivan, to ask him to examine whether an overall cap on executive remuneration can be introduced for the banking sector, in the light of the significant Government support that is now being provided to the sector and the pay restraint that is now a feature of other areas of the economy, including the public sector. The banking sector will need to play its part in reducing our cost base to ensure our competitiveness in the years ahead.

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