Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to the publication of the Mercer Report on pay and perks, the investigation, if any, he has carried out into the reported practice in Spain where executives of Bankia were ordered to pay back annual incentives paid before the bailout. [14907/13]

Michael Noonan (Limerick City, Fine Gael)
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I had noted the actions taken in Spain for the demand of the return of certain incentive payments already made from a cadre of executives of the Spanish bank, Bankia, as part of its recapitalisation late last year. The situation while analogous in some respects to our banking recapitalisations would not appear to be similar in all respects to the domestic circumstances underpinning our recapitalisations. Also the different legal systems in the two countries would also be a factor for consideration.

I am also conscious of on-going legal cases in this sensitive area and would be reluctant to make further comment on that basis.

I would point out that the Review of Remuneration Practices and Frameworks at the Covered Institutions stated that bonus payments are no longer payable at the banks.

Pearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to the publication of the Mercer Report on pay and perks, the reason employees in banks have seen their salaries increase by levels which are amongst the highest in Europe, whilst employees in the public sector are being asked to provide pay cuts. [14908/13]

Michael Noonan (Limerick City, Fine Gael)
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The Review of Remuneration and Practices and Frameworks at the covered institutions revealed that salaries for continuing employees has increased within a range of 4% to 6% due to pay increases awarded in 2009 and individual promotions across the remaining three covered institutions. No pay increases have been provided to the generality of the employees since that time and the Review states that bonuses are no longer payable at the covered institutions. It is not correct to say that the Review indicates that bankers salaries are among the highest in Europe. In fact, the Review opines that at senior executive level and above salaries are generally behind the market as compared to quoted Irish companies and the Mercer European Financial Services survey and significantly behind when incentives are taken into account.

The Government has taken the decision that with the remaining Covered Institutions still incurring losses it was an inescapable conclusion that the cost base of the institutions needs to be reduced further. This is essential if they are to return to profitability, be in a position to support the economy and repay the State’s investment through a return to private ownership.

In terms of next steps, I, on behalf of the Government, have directed the banks to come up with plans as to how they intend to address this issue in a manner that can help meet the State's objectives. I expect the value of those plans to mean a saving of 6% - 10% of total remuneration costs, through reductions in payroll and pension benefits, new working arrangements and structures that deliver efficiency gains.