He's Don banker's side

DAIL ROW AS BANKER SALARY CAP LIFTED

- LOUISE BURNE

• Decision during cost of living crisis branded as twisted
• Donohoe claims measure will ensure stability of banking

FINANCE Minister Paschal Donohoe has defended the decision to remove the €500,000 salary caps for some bankers as well as reinstating bonuses of up to €20,000. 

Tempers flared in the Dail yesterday, as Sinn Fein leader Mary Lou McDonald branded the move “twisted” while “workers and families endure an unprecedented cost-of-living crisis”.

It also comes following a number of interest rate hikes announced by the European Central Bank that will directly affect Irish customers.

Mr Donohoe, alongside Minister of State Sean Fleming, published the Retail Banking Review yesterday afternoon.

A controversial recommendation included permitting bonuses of up to €20,000 per year for employees in AIB, Bank of Ireland and Permanent TSB. In the case of Bank of Ireland employees, it was recommended that the maximum pay cap of €500,000 for an individual should be removed.

Both of these recommendations were accepted by the Government.

These measures were put in place following the financial crash that saw the Government bail out the banks to the tune of €45.7billion.