Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The Deputy will be aware that when publishing the review of remuneration practices and frameworks at the covered institutions on 12 March 2013, I indicated that the Government had formed the view that with the remaining State-supported banks still incurring losses it was an inescapable conclusion that the cost base of the institutions needed to be reduced further. This is essential if they are to return to profitability and be in a position to support the economy and repay the State's investment through a return to private ownership. On behalf of the Government, I directed the banks to come up with plans as to how they intend to address this issue in a manner that can help meet the State's objectives, and I expect the value of those plans to mean a saving of 6% to 10% of total remuneration costs. I was not prescriptive in how this was to be achieved, respecting their differing State ownership and investment arrangements and paths to profitability. I can confirm that the three State-supported banks responded with their individual strategies designed to achieve the required savings by the due date of 30 April, as requested by the Government. Those plans are being evaluated by my Department currently. It is not possible at this stage to reveal precise individual details bar what has been put into the public domain. I can confirm that all three institutions have put forward pension changes to varying degrees as part of their respective overall responses.

I am constrained as to what I can say at the current time due to commercial sensitivities and, perhaps more critical at this stage, industrial relations concerns as the normal protocols continue and need to be respected and observed by all parties. This is something I have advocated throughout the process. I am anxious, therefore, that all the participants in these discussions are given space and time to conduct these critical negotiations.

Accordingly, I would encourage all sides to engage in these discussions proactively, through the appropriate forums, in view of the serious and critical consequences for all concerned. In this context, the Government readily acknowledges the sacrifices and changes made by bank employees to date at all levels, and recognises that this has been achieved without major industrial unrest in what is a critically important sector.

It follows that, at this stage, it would not be appropriate or realistic to specify a timeframe for the savings to be delivered. However, in view of the fact that the three institutions continue to be loss-making, the timely delivery of such savings is critical to their viability and to the future employment prospects of their employees.

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