No bonuses to be paid at AIB

Date: 14/12/2010
Posted by: Darragh

As Chairman of the Fianna Fail Finance and Economic policy committee, I welcome the announcement that no bonuses will be paid to staff at AIB.

The Minister for Finance Brian Lenihan has written to the Board of AIB outlining that the payment of the required financial support for the bank will be conditional on the non-payment of bonuses awarded, no matter when they may have been earned. As a result the board of the bank has decided not to pay the bonus payments.

I think this is a very important development, the Government and the Minister have taken a tough line with the bank and we have the desired result for the public.

It was wrong from the outset that such bonuses would be paid for work done in 2008 when we know now that in 2008 AIB was far from in a strong position and is now dependent on the support of the taxpayer for its very survival.

The Government is implementing a tough budgetary strategy that is asking a lot of our people at this difficult time and there's simply no way we can ask ordinary people on middle incomes to accept this strategy while senior staff in banks cash-in.

Many members of my committee have rightly been expressing their outrage that this was even possible. I want to thank Minister Lenihan for his tough and inventive approach to this important matter which I hope sends a clear message to all banks in receipt of taxpayer assistance.