Eamon Gilmore (Dún Laoghaire, Labour)

In the past year or so, we have spent a great deal of time discussing the banks. Time and again, the Government has come into the House to ask us to stump up taxpayers' money to help out the banks. The State guarantee scheme, which was introduced in September 2008, was followed shortly afterwards by the nationalisation of Anglo Irish Bank and the €7 billion recapitalisation of some other banks. The NAMA legislation proposes to put up €54 billion in Government bonds to take the bad loans from the banks. In return for that, we were told time and again there would be big changes at the top of the banks. The guarantee scheme, for example, provided that the Minister or regulatory authority could give directions taking specified steps to restructure executive management responsibility, strengthen management capacity and improve the corporate governance of banks. Unfortunately, we have not seen much change of this kind at the top level of the banks. Bank of Ireland appointed a new chief executive but it was an internal appointment. The chief executive of AIB announced his retirement on 30 April and has not yet been replaced. Newspaper reports suggest AIB wants to make an internal appointment whereas the Government wants to make an external one. One commentator, Mr. John McManus, writing in The Irish Times this week on these circumstances, stated "the decision of AIB to face down the Government indicates that the amazing arrogance that has characterised AIB's behaviour over the past 12 months – and no doubt contributed to the mess it has found itself in – remains undiminished".

What exactly has changed, if anything, at the top level of our major banks in return for the taxpayers' largesse? Is there a stand-off between the board of AIB and the Government with regard to the appointment of a new chief executive? If so, will the Government hold its line on it?

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