The Irish banks that were bailed out by the taxpayer in 2008 have been ordered to further cut their pay bill by between 6 and 10 per cent.

It follows the publication of the Mercer report on bankers remuneration which found that average salaries in Irish banks have increased over the past four years.

Minister Michael Noonan has ordered the banks to cut their pay bill either through wage reductions, pension cuts or job losses.

Business reporter Ian Guider says the Minister is telling the banks to cut pay costs - but is not telling them how to do it: