Darragh O'Brien (Fianna Fail)

This side of the House will support the Civil Law (Miscellaneous Provisions) Bill 2011. It emanates from the previous Government. We will table amendments on Committee Stage which is to be taken next week. It is important legislation which is to be welcomed. It might not go far enough as regards the time lines but this can be dealt with next week by way of amendment.

Senator Healy Eames and others raised the issue of the culture of bonus payments. It has been publicised that more than 80% of the staff of the NTMA were paid bonuses in 2010, with the average payment being more than €7,000. Some of the amounts are startling. While nine of the most senior executives in the NTMA waived their bonus payments and this is to be welcomed, these nine payments came in total to €905,000. I ask the Government to examine the bonus payments structure. I understand contractual issues are involved. Rather than dealing with the payment of bonuses on an ad hoc basis, the Government should set in train agreements with the agencies that bonuses should not be accepted. This would avoid weekly revelations about bonus payments.

As regards the pension schemes of the NTMA and the National Asset Management Agency, NTMA staff are not deemed to be public servants but are contract staff. They have defined contribution pension schemes, the amount on retirement being based on investment returns. Last year the NTMA proceeded to set up a hybrid scheme. It was moving its staff to a defined benefit scheme akin to public sector and some private sector pension schemes. Most companies cannot afford to pay for such schemes. I raised this matter last year with the former head of the NTMA but we did not get very far. This is a matter the Minister for Finance should raise with the NTMA. Has it continued to move ahead, against advice, to establish what is effectively a Rolls-Royce pension scheme for non-public service workers at a major cost to the State? This has also happened in the universities to which I referred last week. Sometimes pension benefits are seen as not being a real cost because they are a cost down the line, in the future. This is adding to the State's liabilities and I urge the Deputy Leader to speak to the Minister for Finance to ascertain what arrangements are in place for pensions in the NTMA and in NAMA. Most of the staff are paid very well for a job they do very well and the NTMA has a very good track record when compared with any international fund managers. However, their pension benefits need to be examined and the Minister for Finance needs to grapple with this issue. I ask the Deputy Leader to raise it with him as a matter of urgency.