Finance Minister Michael Noonan has accepted that there should be no further pay cuts at this time at Irish Bank Resolution Corporation - formerly Anglo Irish Bank.

He was responding to a parliamentary question from Fine Gael TD Eoghan Murphy, who asked if consideration had been given to aligning remuneration at the bank to public service pay rates, given that it was fully nationalised.

Mr Noonan said he had asked the IBRC board to consider the issue of pay cuts.

However, after considering the issue, the IBRC board had advised the Minister that pay cuts should not be implemented at this time on grounds of staff retention which was a critical issue for the bank.

Mr Noonan told Deputy Murphy that he had accepted the IBRC board's position at this time, but had asked that the situation regarding remuneration be kept under review.

He also conveyed his view that "downward pressure" should be exerted regarding remuneration packages of any new staff recruited to the bank.

IBRC maintained that skills of existing staff were required to carry out asset recovery on behalf of the state and the taxpayer - and that further pay cuts would create a risk for the bank in terms of staff retention. Mr Noonan said there had been a considerable reduction in staff numbers and that current staff were being regularly head-hunted by other organisations.

The Minister said the bank had told him that a 20% pay cut had been applied to senior management salaries immediately after it was nationalised - and that those salaries had remained in place for subsequent recruits.

Mr Noonan's response also also notes that IBRC does not operate a "performance based incentive plan", and that remuneration for the top 50 individuals in the organisation had been cut by 15% between 2009 and March 2012.

34 of the 50 most senior people employed pre nationalisation - 68% - have left the bank. In addition, total staff costs had almost halved - with a 48% reduction between the end of 2008 and the end of 2011.

This includes six months of additional cost due to the merger with the former Irish Nationwide Building Society last year.

Mr Noonan also pointed out that the total headcount in the combined Anglo Irish Bank and INBS organisation had been cut by 60% from almost 2,250 in January 2009 to 919 today. IBRC also employs 184 front line staff in its NAMA servicing unit.