John Gerard Hanafin (Fianna Fail)

I call for a debate on the four year plan. I am conscious of the forthcoming budget. People are being asked to take cuts, which have been as fairly spread as possible. I am conscious of an area in which there are not cuts, namely, semi-State companies which are State companies with a commercial entity. The heads of these companies are being paid in excess of €500,000, often €700,000. In the good times, we were told by the bankers earning €2 million or €3 million plus bonuses that we had to pay top dollar to get professionals. They went so far as to suggest that if we paid peanuts we would get monkeys. If Bobo in Dublin Zoo had been looking after the banks we would have done much better. The reality is that we need to examine the salaries paid by the State to people in semi-State companies that are causing people to be scandalised. A salary of €700,000 is totally unacceptable and a cap should be put on those salaries.

I am cognisant that this morning an official from Commissioner Rehn's office has suggested that the people who hold senior debt in the banks should take a write down. If this is the case, it is a game changer. Europe is now suggesting, if this is correct, that the senior debt should be restructured. I suggest we have a full debate on this matter, in particular in light of the comments made by Mr. David McWilliams that these people should be requested to take shares in the banks, which is a standard practise in the United States. If Europe is suggesting to us that senior debt should not be paid to those in the banks who took a commercial risk, we should give this serious consideration.