Eamon Gilmore (Dún Laoghaire, Labour)

During Taoiseach's questions earlier this afternoon, I asked the Taoiseach about last night's episode of "Prime Time Investigates", which showed the cruel, abusive and inhuman treatment of vulnerable elderly people and the lack of regulation of this area. These problems have resulted from the Government's determination to privatise home care services. I intend to return to the subject on the Order of Business proper.

I would like to ask the Taoiseach about the letter the Minister for Finance has written to Allied Irish Bank, which purports to stop the payment of €40 million in bonuses to executives of the bank. The Government was shamed into sending the letter. It originally told us nothing could be done for legal reasons. It said it would deal with the matter by taxing future bonuses. The Government then said it would examine the matter again. Eventually, the Minister for Finance wrote the letter. I suppose it is a case of better late than never. The issue that arises is whether it might be too late. The Minister for Finance has acknowledged that the letter cannot stop the payment of the bonus to Mr. Foy, who took the legal challenge against AIB. The challenge was not contested by AIB.

I have been told that proceedings have been already started in at least 90 other similar legal challenges. Will the letter sent by the Minister, Deputy Brian Lenihan, prevent the payment of bonuses to the 90 people who are involved in those cases? Can the Taoiseach explain why the letter was not sent at an earlier stage? The Government had a number of opportunities to take a position of this kind. It could have done so when the legislation on the guarantee was being dealt with in 2008. I remind the House that the legislation provided that terms and conditions, relating for example to remuneration and bonuses, would be attached to the guarantee. Why was the letter not sent when the original recapitalisation of AIB, in the original amount of €3.5 billion, was brought forward by the Government? When did the Government first become aware that these bonuses were to be paid? When was it informed that legal action had been initiated? When was it informed that a judgment - to the effect that a bonus was to be paid in Mr. Foy's case - had been made without contest?

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