Coughlan rules out curbing pay packages

THE GOVERNMENT had no plans to introduce legislation curbing remuneration packages for those responsible for the banking crisis, Tánaiste Mary Coughlan told the Dáil.

“I am not aware of any further legislation that may be introduced in this regard,” she said.

She was replying to Fine Gael leader Enda Kenny who asked if the Government intended introducing legislation “to do something about the extent of bonuses and pensions paid to persons who were clearly grossly incompetent in their duties”.

Ms Coughlan said she was on record since last year, as were many of her colleagues, as saying that Michael Fingleton, former chief executive of Irish Nationwide, should repay the €1 million bonus he had received.

“I support the Taoiseach’s view that everything that can be done will be done to ensure that repayment takes place.”

“The Tánaiste has said she is not aware and that is exactly the problem with this Government,” Mr Kenny said. “It is not aware because it is immune to the reality of what is happening around this country.”

Mr Kenny said there was legislation which provided the Government with the power to direct a covered institution to amend a remuneration plan. He asked if, in view of the incompetence of the former financial regulator, Patrick Neary, his remuneration and pension were appropriate. “Is it her intention to introduce legislation to do something about that after due process of examination?”

Ms Coughlan said there was “no legislation promised as per the question put. I am not going to come into this House and say that there may or may not be legislation when, in fact, at this moment in time, there are no proposals to introduce legislation.”

Mr Kenny said Taoiseach Brian Cowen had used the phrase “in every respect” when dealing with the matter and he assumed that included legislation.

“We have to deal with issues of fact,” Ms Coughlan said. “The Opposition can deal with nuances and interpretations, but we do not have that privilege.”

It was clearly the Government’s view that Mr Fingleton should return the money. “He has publicly indicated that he will. The current chief executive has tried to pursue that matter, but that has not manifested itself in the return of that money.”

Ms Coughlan said the Taoiseach had indicated the matter would be pursued “in every respect”.

Mr Kenny remarked: “I am glad the Tánaiste said that we cannot assume what the Taoiseach says is the truth.”

Ms Coughlan replied: “That is a scurrilous remark that I will not accept on this side of the House.”

Labour leader Eamon Gilmore said: “Many business people in the country, who are in difficulty with the Revenue Commissioners, would love to be sent some soothing message from the Government asking them to pay the money and stating it would do everything it can to recover the money”.

Sinn Féin’s Caoimhghín Ó Caoláin said: “What we have here is a whisper in the ear or a word on the side, all leading to that type of reactive politics and overall management.”