Shane Ross (Independent)

These individuals are putting up two fingers to the Government on a daily basis and they are winning. When the chief executive of AIB put two fingers up to the Irish people last week, I really began to despair. The individual in question stated he would remain in his job for the foreseeable future. When asked what he would be paid, in words reminiscent of those used by the former chief executive of Bank of Ireland, he stated his annual remuneration would be €690,000. I am not engaging in rhetoric; I am providing plain, factual, forensic evidence when I state that €690,000 is an exorbitant amount to pay someone who has presided over the absolute pulverisation of the value of shares in AIB. On this man's watch, share values have decreased by 98% or 99%.

The board of AIB was completely irresponsible in announcing last year that, for reasons those in the market or anyone else could not possibly understand, it was going to increase the dividend paid to shareholders. Now the chief executive has stated he will only take home €690,000 this year. In my opinion, that is €689,000 too much. That is just this man's salary.

Will the Minister of State outline the Government's attitude to share options? Let it provide an indication in that regard before CIROC issues its report. If I were a very cynical banker — God knows there are plenty of them around — I would state that I was taking a salary cut and that I would only be paid €700,000, and I would give myself a pat on the back. When matters have settled down somewhat, the boards of the banks — which dished out an orgy of share options in the past — would suddenly get the bright idea that I and others like me should be given a few share options. That avenue remains open to the banks and they would provide share options at rock bottom prices.

The share price will not go much lower than it stands at present, even if the banks to which the Bill relates go bankrupt and are nationalised. If that happens, the cynical bankers to whom I refer will get back on the gravy train by means of the back door. These guys make their money not through their basic salaries but through underhand perks such as those I have outlined. If the incumbent at Bank of Ireland receives unlimited options in the future, he may perhaps make millions of euro within in a few years.

It is not acceptable to state that we should wait for the CIROC report. I do not recall who serves on that committee but I believe those involved may be highly paid civil servants. Why are the customers and small shareholders of the banks who would have views in respect of this matter not members of CIROC? My guess is that those serving on the committee have some knowledge of the banking industry, have themselves benefited and are very highly paid people. I am sure these individuals have not suffered at the hands of the banks.

It is not good enough to say that we are going to leave responsibility for this matter to someone else. This time next week, CIROC will report and will recommend reductions and caps here, there and everywhere. The Minister for Finance will accept the parts he likes and will reject those with which he is not enamoured. What eventually emerges will be riddled with loopholes and will contain recommendations on performance criteria that will enable top bankers to earn fortunes once again.

What has happened to the Government's nominees on these boards? Are they asleep or are they conflicted? The board of Irish Life & Permanent sat late one night recently and emerged with a result of which the Minister for Finance did not approve. As a result of the outcry that followed, the Minister directed those on the board to meet on the following day. On the second occasion, these people arrived at a different result. Had events not unfolded in this way, the board of that institution would have got away with something. I presume it would have done so against the wishes of the two Government-appointed directors on the board.

The Government-appointed directors to whom I refer have already proven themselves to be political eunuchs. I do not know whether they have gone native, have been ostracised or have no influence. In a case such as that involving Irish Life & Permanent, if they could not get their way and if the old board was up to its old tricks, we must ask what sort of role the Government is playing in respect of the banks. We have the right to exert major control over the activities of the two main banks once this €7 billion has been invested.

The Minister of State indicated the funds provided by the NTMA do not constitute taxpayers' money. Of course it is taxpayers' money. This money may not be taxed currently but it came from the Government pot, which is owned by the taxpayer. I beg the Minister of State to outline the Government's attitude to those who are earning €700,000 and not merely to state we will reconsider the matter when CIROC reports next week. Why does the Government not have more control over the banks which caused so much trouble for the economy?