Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

171. To ask the Minister for Finance his views on the implementation of the Mercer report in relation to remuneration at the State supported banks; and if he will make a statement on the matter. [32679/14]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

As the Deputy will be aware the Review of Remuneration Practices & Frameworks at the Covered Institutions (the "Mercer Report") was published by my Department on 12th March 2013. Following the publication I requested that the three banks in which the State is a shareholder make savings in total remuneration costs of 6% to 10%.  The three banks responded with their individual strategies, designed to achieve the required savings, by the due date of 30 April as requested. I was not prescriptive in how this was to be achieved respecting their differing State ownership and investment and paths to profitability. I reviewed the plans submitted and in light of the various industrial relations developments during 2013 I was satisfied that the banks' plans would meet my direction.

It is worth noting in this context that in their respective 2013 annual results,  AIB reported a 16% year-on-year decline in costs while ptsb reported a 13% decline in staff costs. Including a one-off pension related gain of c€400m, Bank of Ireland's total costs reduced by 28% year-on-year. Despite this momentum it is imperative that all the banks make every effort to hold down costs in the coming years and particularly staff related costs which form the majority of total costs.