Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

-----of 0.15% and for the following year as well. However, when one looks at section 67 of the Finance (No. 2) Bill, there is no abolition but an increase to 0.75% in the existing levy. There is no abolition and the legislation increases the levy. It does not abolish one and replace it with another but maybe that is being pedantic.

The issue I want to raise is where all of this is going because the intention was that next year would be the last year a pension levy would be collected. Now, as well as linking it to the jobs initiative, the Minister has also linked it to issues in certain pension schemes, in particular the issue of schemes experiencing double insolvency where both the pension scheme and the company itself are insolvent. That issue is provided for in the Social Welfare and Pensions (No. 2) Bill 2013.

The additional pension levy will bring in approximately €270 million over a two-year period but what if the contingent liability across various schemes which are doubly insolvent is considerably greater than that? What commitment can the Minister give on the future of this 0.15% levy? The levy was meant to be gone at the end of next year but it is now being increased for next year and will be collected again in 2015. The bottom line is how can people believe the Minister this time that it will be abolished.