Gerald Nash (Louth, Labour)
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Question 61: To ask the Minister for Finance if he directly requested the board and management of the EBS to withhold payment of the annual staff Christmas bonus; if he will set out the reasons behind this decision; and if he will make a statement on the matter. [40410/11]

Seán Kenny (Dublin North East, Labour)
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Question 67: To ask the Minister for Finance the steps he will take with EBS to ensure that the administrative staff of EBS will retain their previous annual salary payments and pay arrangement when they become part of AIB group. [40538/11]

Aodhán Ó Ríordáin (Dublin North Central, Labour)
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Question 72: To ask the Minister for Finance if he will give an update in respect of any bonuses paid to staff or management at EBS; and if he will make a statement on the matter. [40633/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 61, 67 and 72 together.

As I indicated in my reply to questions nos. 82 and 83 of 14 December 2011 (refs 40290/11 and 40334/11) - on the same subject, I am advised by the institutions involved that the payments in question are considered bonus payments as per their description in the relevant contracts. On this basis, as the conditions governing the provision of State assistance to Allied Irish Banks (AIB) prohibit the payment or awarding of bonuses whatsoever, the bank took the view that it is not in a position to make such payments to employees of EBS (which since 1 July 2011 is a wholly owned subsidiary of AIB). The Government's prohibition on the payment of bonuses is a consequence of the level of State capital that has been provided to the banking sector. This capital investment by the State has protected jobs throughout the financial sector.

Much has been made of the fact that these payments have been paid for a number of years previously including especially from 2008 onwards. When the State invested moneys in EBS in May 2010 by means of a subscription for a Special Investment Share remuneration restrictions only applied to senior management. As conditions deteriorated and further capital was injected into AIB in December 2010 these restrictions were broadened to prohibit the payment of bonuses to all staff and became the template that would apply to all of the institutions as further investment was made. Had EBS been maintained as a separate institution following the PCAR exercise of March 2011 any further injection of capital would have been covered by the expanded restrictions. The Government decided, as part of the restructuring of the banking sector, that EBS would merge into AIB and as a result the wider restrictions on the payment of bonuses came into effect. I am informed by AIB that no such payments have been made to EBS management since 1992 and no bonuses of any kind have been paid to this cadre of employee since 2008 in line with the conditions outlined above.