Fianna Fáil has accused the Government of gross hypocrisy on bankers' pay and pensions after it emerged that a new executive at IBRC will begin next week on an overall package of more than €500,000.

Kevin Blake joins the State-owned bank on Monday as chief risk officer on a remuneration package, including pay, benefits and pension, of over €500,000.

It was revealed last week that six employees at IBRC were paid more than €500,000 and Mr Blake will be the seventh.

The Department of Finance has today defended its approval of Mr Blake's level of remuneration.

It says the overall package is in line with guidelines and a spokesman said the role of chief risk officer was a very important one.

In a statement, Fianna Fáil Finance Spokesman Michael McGrath said there was no evidence of political will on the part of the Government to tackle what he called "the enormous benefits" paid to bankers.

He accused Finance Minister Michael Noonan of "speaking out of both sides of his mouth" on the issue.

An IBRC spokesman pointed to comments by the bank's CEO Mike Aynsley last week that he had to hire qualified people.