Brian Cowen (Laois-Offaly, Fianna Fail)

That is right, when the payments were being made. The issue had been deferred from 2008 into 2009 and was continuing to be deferred because obviously there was some debate as to whether the payment could be avoided. However, the legal advice was to the effect that it had to be paid, and there were some 1,460 employees who had chalked up aggregate bonus awards to the tune of around €35.5 million. Therefore, the issue of the 91 employees is not the same as the 1,460, which is the total number.

The supervening issue being referred to by the Minister was such that he was indicating to the bank that if it was to go ahead and pay these bonus awards, it would be putting at risk the State money to be provided under the recapitalisation programme. Therefore, the directors of AIB took a unanimous decision that it was in the best interests of the bank, given that series of events, not to proceed with the bonus awards, despite the legal advice the bank had been given. This was the basis on which that decision was taken by the bank and it is the basis upon which we are now proceeding.

This decision was the result of continuing efforts over the weekend, following political discussions and advice on whether there was a way this matter could be resolved so that the taxpayer would not have to provide money for this purpose, despite the fact that there were pre-existing contractual arrangements in place. Therefore, as was said by the Minister this morning, this is difficult territory in legal terms, but we believe this is the means by which we can ensure that bonus payments are not paid, and to do so in a way that withstands legal scrutiny.

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