Minister for Education Ruairi Quinn has said he would welcome the voluntary reduction of former bankers' pensions.

Mr Quinn said he would like to see other former bankers follow the example of former AIB chief executive Eugene Sheehy, who voluntarily cut his pension.

However, he said that people should not create "some kind of hunt against certain individuals who have rights as citizens, and with whom contracts were signed with the previous government".

Earlier this week, a spokesperson for Minister for Finance Michael Noonan said the minister is not "legally empowered" to reduce "historic salaries" which are above the Government-imposed pay cap.