Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Three issues are at play regarding this, that is, how this position interacts with the law, whether it is politically appropriate, and the precedent it sets for other banks. On the first point, I have read the legislation, which specifies that excessive bank remuneration charges will apply to employees of any institutions that were given financial support under either the Credit Institutions (Financial Support) Act 2008 or the National Pensions Reserve Fund Act 2000.

AIB was one of those bailed out by the Irish taxpayer the tune of €20.8 billion. There is, therefore, no question the bankers' levy applies in law to AIB. The question now is how AIB has dodged the levy by acquiring Goodbody stockbrokers and how the Minister's consent to this arrangement - this financial engineering - was possible given the requirements of the law and the fact it is now fully owned 100% by AIB.

The second issue is whether it is appropriate at all given the actions of the banks and the stockbrokers in recent times, from the tracker mortgage scandal to Davy, as well as the fact the taxpayer still has to recoup the €10 billion pumped into AIB to save it. There is no doubt that this is about eroding the bankers' levy. How can this decision to undercut be deemed appropriate by the Minister who gave his consent to this process when so much remains to be resolved?

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