Michael McGrath (Cork South Central, Fianna Fail)
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134. To ask the Minister for Finance if he has reviewed the implementation of the Mercer report on remuneration in the State supported banks; and if he will make a statement on the matter. [49307/14]

Michael Noonan (Limerick City, Fine Gael)
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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.

The management of costs remains an ongoing priority across the banks and my officials monitor the evolution of the various trends both for staff and non-staff expenses on a monthly basis. Keeping costs under control will no doubt be challenging as deleveraging comes to an end and the economy improves. In addition, increased regulatory oversight and necessary investment in technology will also need to be considered.  However the overall imperative is to ensure sustainable profitability which will help maximise the future return for the taxpayer.