Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

As I have stated a number of times, it is a matter of judgment as to where one pitches the figure. We discussed a figure of 25%, but I decided to increase it to 30%. One of the considerations of which I remain aware is the fact that while it is designed to provide relief for persons in temporary financial difficulty, we want to proceed in a way which will not impair their provisions for their retirement. In that regard, we must consider the position of those to whom these individuals owe money. Would it be possible, for example, for a bank to state, "It is now legal to access your AVCs, please withdraw 30% of your voluntary contributions and give them to us"? There is an obvious risk in this regard and we must be very cautious in how we proceed.

I am not rejecting any of the proposals Deputies Kieran O'Donnell, Pearse Doherty or Michael McGrath are making, I am simply stating the prudent way to proceed is to wait for the publication of the study of pensions commissioned by the Minister for Social Protection. We could revisit these issues on the back of the debate on that study. As stated, a wider debate on pensions is necessary. I introduced measures in the budget which will restrict tax relief on pensions and these will be operational from next year. There is much work being done on the amending pension legislation which it will be necessary to enact in order to change the size of pension pots, etc. There is much happening in the pensions area and if we implement this one measure now, it would benefit a certain number of people with whom we are all familiar. I do not want to go beyond that at this point in the absence of a full debate and more guidance.