Pearse Doherty (Donegal South West, Sinn Fein)

I appreciate that. We are on the same page as the Labour Party in this matter. We agree there should be an exemption for the circumstances mentioned by the Labour Party Members, but the measure should be income-linked so that it does not catch the rest. I advise the officials, through the Minister, that the note needs to deal with the question of recapitalisation. I made this point to the Minister for Finance, Deputy Lenihan, but he decided not to answer it and instead made a political charge at me. Will that recapitalisation measure now be defunct as a result of this change?

The Minister should also remember - the note needs to deal with this issue - that there are a number of cases before the courts to do with these bonuses. I understand that one has already been adjudicated on and the bonus will be paid. I am not sure whether it has been paid already, but if it is to be paid, the recapitalisation threat does not exist - it will be paid. If the others are successful, they will also be paid, regardless of the recapitalisation threat.

We understand the nature of the Constitution and the role of the courts in these matters. Regardless of what the courts say, if every single one of those bankers went to court to get his or her bonus, and agreed with the bank that the bonus would be paid at only €19,999, there is nothing we can do in terms of threats about recapitalisation; we would have to pay them. Thus, the 90% tax is where we catch them. The point that needs to be clarified is as follows: if a banker goes to court to get his or her bonus, which will be paid at €19,999 under an agreement with the bank, will he or she be subject to a combined tax of 90%, which I believe is the intention of the Government?

This is rushed legislation and it is important that we try to address flaws, loopholes and things that might not have been envisaged beforehand. I will repeat my question, to be clear: in the case of a banker who goes to court to get a bonus which, it is agreed, will be paid at €19,999, will the universal social charge kick in?

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