Sir Peter queries bonuses for banks

SIR PETER Tapsell has questioned bankers’ bonuses.

Speaking in the House of Commons the Louth and Horncastle MP asked: “Do Treasury ministers agree that the real problem with bankers’ bonuses is that they are paid not out of profits, but out of revenues?

“Taxing banks after the bonuses have been paid merely depresses dividends, particularly for pension funds.

“Why are bankers’ bonuses not paid out of profits, as they always were by my very efficient stockbroking firm?”

A government spokesperon replied bonuses for very highly paid staff are paid out principally in shares not cash.