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Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: When the public interest directors met him in May last, did the issues of dealing with the write-down of loans and personal insolvency feature in the conversation?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: I will take that as a “Yes”.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Including the issues of write-downs and personal insolvency.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: What is Mr. MacSharry saying then?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Presumably, it also included the issue of mortgage arrears.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Do the directors know the extent of contact between their institution and the Minister over several months and conversations in respect of the personal insolvency legislation?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Does Mr. MacSharry know if there was any lobbying on the content of the legislation?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Outside of that collaborative approach, are the directors aware of other direct contacts between the institution and the Minister on this issue?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Mr. MacSharry is on the bank's remuneration committee. Is it in the public interest to pay somebody €500,000?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: The chief executive officer is paid this sum and it includes his pension entitlement.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Therefore, the committee has no role in deciding the remuneration for somebody in that position?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Did the committee just rubber-stamp it?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: The remuneration committee was not the deciding body. It simply rubber-stamped the decision.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Through the lens of the public interest, did Mr. MacSharry have concerns when he saw a package of that size? Did it ring a public interest alarm bell in his head?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: In Mr. MacSharry's previous incarnation through his involvement with the Bank of Ireland between 1993 and 2005 he probably took the same view of the remuneration packages enjoyed by senior figures.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Mr. MacSharry probably would have sat before a committee such as this and told it that if one wanted the best, one had to pay the bucks. We know where that led us.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: More is the pity.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Were their salaries at the time merited?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: In Mr. MacSharry's mind, therefore, it was merited.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Mary Lou McDonald: Up to 12% of Permanent TSB employees earn in excess of €100,000. I assume Mr. MacSharry believes this is the rate that has to be paid. Does he see how extraordinary this is for anyone looking in at a bailed out institution which is not enthusiastic about dealing with the issue of write-downs to give relief to the general public? In my mind, the institution does this in a delusional...

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