Kieran O'Donnell (Limerick City, Fine Gael)

It made no sense. The Government is in negotiations with the airlines on this matter. I welcome that the taxpayer will see a return from the reduction in the travel tax. Also, I welcome, in the context of Shannon, the tourism marketing fund which will focus on bringing extra tourists to Ireland. From 2007 to 2010 there was a 25% reduction in passenger numbers nationally. Tourism is an export industry, a fact often overlooked. It is an export industry that provides jobs. We must be export driven but must link this to employment. Tourism will provide this opportunity in a speedier manner than will other areas of export, which, too, are to be welcomed. Tourism is vital.

I want now to deal with the funding of the jobs initiative through the pension levy. It is important to put this in context. Currently, total fees, including dealing costs and management fees, charged by pension funds amounts to 1.5% of the value of the fund. The pension levy amounts to 0.6%. We are currently seeking to reform our banking sector and other areas and must also seek to reform the pension sector. Pension providers will have to step up to the mark. There needs to be transparency in terms of fees charged. I welcome that the Taoiseach has directed the Minister for Finance to examine this issue. We must encourage people to provide for their pensions. Our counterparts in the UK have management fees of 0.3%. Irish pension funds charge management fees of upwards of 1%. There is scope for change in this area. Studies have shown that up to one third of the value of pension funds are eaten up by fees and administration costs.

The jobs initiative is a practical first step in terms of job creation. The pension industry must step up to the mark in this regard. I welcome that the Minister for Finance is examining this area.

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