Eamon Gilmore (Dún Laoghaire, Labour)

The position, as I understand it and as the Minister for Finance has been communicating it, is that he has told Allied Irish Banks that if it proceeds to pay these bonuses, the bank will not benefit from the taxpayers' money the State intends to put into the bank. That is a position we would all support, but my question is whether it will work. The Minister has already acknowledged that it cannot affect the bonus in the case that has already been through the court and where the award has been made. The Taoiseach says there are 91 other cases in which legal proceedings have started. My advice is that, according to the Buckley case in 1950, the Oireachtas or the Executive cannot intervene or supervene - the word now being used by the Minister - in a case which has already commenced. If that is the case, while the Minister has sent his letter, bonuses will still have to be paid.

The Taoiseach's answer earlier has not clarified the position for me. Are we in a situation where the Minister is shutting the door after the bonuses have bolted? While he has finally taken action after all the publicity, are we not in a situation where it will not do the trick? Given that he did not do this when the guarantee legislation was going through the House, when the original recapitalisation was being done or when he found out that the bank was considering paying the bonuses, and although the letter is written and the threat made, are we in fact in a situation where, as this works its way out, we will find that the bonuses will end up having to be paid?

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