Terms of redundancy to IBRC staff 'a core issue'

A Government backbencher has contrasted the pensions paid to former executives of Irish Bank Resolution Corporation (IBRC) with the options available to rank and file staff following its liquidation.

Labour TD Arthur Spring told the Dáil last night that a core issue was the terms that would be available to staff if compulsory redundancies were necessary. Directors and senior managers had been paid off with very lucrative redundancy terms.

“The people who put their shoulder to the wheel have a level of expectation signed up for by a State organisation, IBRC.” Mr Spring, who said he was a former employee of the organisation, said it was an issue of fairness and justice for people who were not responsible for the downfall of Anglo Irish Bank and Irish Nationwide.

“They have been working for the State on behalf of the citizens and the taxpayers to put right what a few people put wrong,” he added.

“The people who put it wrong were senior management, directors, and people who did not have a day-to-day job that was more relevant to the average industrial wage.”

Employees rehired

Minister of State John Perry, on behalf of Minister for Finance Michael Noonan, said it was very likely the employees would be rehired for the duration of the liquidation. Most employees had been rehired on monthly contracts and some staff might be offered positions with Nama or other purchasers of assets to manage loan portfolios.

Earlier, during the resumed debate on the promissory note deal, Sinn Féin leader Gerry Adams said the recent RTÉ documentary on Irish Nationwide had been a timely reminder to people of what debt they were paying. It had exposed the extent to which banking practices of the institution were out of control.

“The corrupt practices involving senior management, developers, speculators and others, in addition to inadequate regulation and incompetent and dishonest decisions by the Fianna Fáil government, saddled the taxpayer with a huge debt of €5.4 billion, plus interest.”

Mr Adams asked where was the writedown, bailout or dig-out for the 180,000 families in mortgage arrears. Every single cent would be paid to the ECB by this and future generations.

Huge win

Gerald Nash (Lab) said the promissory note deal was a huge win for the country, adding that he found it extraordinary to witness Sinn Féin’s twisting over recent days. “The silence and discomfort on the Sinn Féin benches, when the deal was announced, was testament to the utter cynicism in the party’s ranks,” he added.

“The best news the country has received since the start of the banking disaster in 2008, with the bank guarantee, was greeted with dismay by Sinn Féin.”

Anne Ferris (Lab) said she welcomed the fact that Anglo Irish Bank and Irish Nationwide were no more.

“The Anglo name and the name of its senior people have been a bane to Irish society for too many years.” Seamus Healy (Ind) said the IBRC might be gone but the debt had not. “It has been turned into a €64 billion debt rather than a €35 billion debt.”

Maureen O’Sullivan (Ind) said the debt should never have been incurred in the first place.