McDonald in clashes with Tánaiste

TÁNAISTE EAMON Gilmore and Sinn Féin deputy leader Mary Lou McDonald have clashed over Labour’s policies on Anglo Irish Bank and on social welfare.

In a row about the revelations of bonuses and other payments of €1.2 million to executives at the bank, Ms McDonald contrasted the salaries of Anglo executives with welfare recipients.

Ms McDonald told the Tánaiste: “You and your colleagues are quick to attack people on welfare payments, accusing those out of work of making a lifestyle choice.”

She said the Government “is offering some lifestyle opportunity to officials and senior employees in a toxic bank that has brought us to the brink of ruin”.

But Mr Gilmore sharply rejected the claim and insisted “the Government does not have a strategy of targeting people on social welfare or on low pay. On the contrary, this Government is supporting and defending those who have lost their jobs and who have found themselves on social welfare, and people on low pay.”

He said the bonuses and deferred payments of €1.2 million to executives at Anglo were “contractually committed to”. These were from 2009, and before the nationalisation of the bank. The granting of bonuses had been ended since.

Ms McDonald said in the Dáil that, of 50 senior people employed at the bank when it was “at the height of its dangerous casino capitalism”, 22 were still in employment there and 19 of them were on salaries of more than €175,000. She added there were developers who were “pocketing €200,000” a year.

Figures revealed in The Irish Timesshowed six of the bank's executives received deferred bonus payments totalling €925,000 last year. Four staff also received just over €296,000 "in lieu of committed remuneration arrangements" on their appointment to the bank.

Ms McDonald asked how the Labour Party could “preside over a scenario where people who made a material contribution to the damage to this State and the wrecking of our economy are walking away with such big salaries, when people on low wages are suffering”.

The Tánaiste said he did not defend “for one moment” the bonuses paid to Anglo Irish staff. “This Government will not stand over the feather bedding of anybody in any part of the banking system. The Government is winding down Anglo Irish Bank and . . . this Government will act fairly and proportionately to everybody.”

But Ms McDonald added: “You allow them to walk away with salaries in excess of €175,000. So the rhetoric of Government commitment to wind down Anglo and your words of anger . . . hold no water.”

The Dublin Central TD asked: “What will you do about their runaway wages, and how can you explain to the public a Government strategy that targets people on low pay and welfare and takes the hands-off attitude to the fat cats and indeed those who have brought such tremendous hardship to the country?”

Mr Gilmore said “grandstanding won’t solve the problem”. The Government had reversed the cut in the minimum wage and would reinstate regulated employment agreements. The Government would protect those on low pay and social welfare, and “there will be fairness to it”.