Removing the cap from banker’s pay and bonuses is a “pro-rich ideological measure that sends a depressing message about who the government listens to and considers when making economic policy”, according to the Cork South West Deputy, Michael Collins.
Speaking from Leinster House earlier today, Deputy Michael Collins, said that the pay rises for bankers were coming at a time when ordinary workers are experiencing rapid pay cuts due to inflation.
“As the country struggles with a cost-of-living crisis, and ordinary people face Christmas not knowing if they can afford to pay for heat or food, it is unethical for the government to ease regulations and reward senior bankers with bonus payments and pay hikes,” he said.
“This pre-Christmas or parting gift by the Fine Gael finance minister, Paschal Donohue, to his banking friends is reprehensible at a time when most societal sectors are finding it difficult to keep their heads above water.”
“There is absolutely no justification to reintroduce bankers’ bonus payments or allow Bank of Ireland now, and AIB and Permanent TSB, once the state’s stake falls below a threshold established by the government, be allowed to abandon the pay cap.”
“The cap on bankers’ pay has its origins in the financial crash and was introduced for good reason. We know that Bankers’ incentives have caused them to behave badly, demonstrated by the fact that when a senior banker’s bonus is tied to a one-year performance term, the banker has the incentive to take short-term risks to maximize their bonus. This greedy practice caused the financial crash.”
“Bankers contributed greatly to practically bankrupting this country during the financial crash and have since acted despicably to cause the tracker mortgage scandals. The tracker scandal resulted in €270 million in fines, meted out to banks for the harm they inflicted on their customers.”
“This year alone, AIB and Bank of Ireland were fined over €197 million for serious regulatory breaches and actions that led to families losing their homes,” he said.
“Despite wrecking the economy, resulting in deep austerity and bitter pain and suffering inflicted on ordinary people, not a single banker has ever been held accountable or punished for their deliberate actions.”
“Four years ago, Fine Gael promised, as a priority, to bring forward legislation to address the tracker mortgage scandal. To date, not a line of legislation has materialized. Now, bonuses, pay rises, and rewards for grotesque behaviour become the government priority.”
“Rewarding bankers confirms the government cannot be trusted to regulate the banks and protect the public interest. When a primary response to corporate wrongdoing is for a government to reward such actions, then we know wrongdoing will reign. This government has crossed the line and is now untrustworthy,” concluded Deputy Collins.