Joan Burton (Dublin West, Labour) | Oireachtas source

We had a brief discussion on this issue this morning. Revenue from the 0.15% levy which will apply in 2013 and 2014 as referenced in the budget will be used to fund the jobs initiative, including the reduced 9% VAT rate for the hospitality sector, and to provide for potential State liabilities which may emerge from pre-existing or future pension fund difficulties. That is what was said by the Minister for Finance in his budget statement in relation to the introduction of the 0.15% levy. The revenue arising to the Exchequer from the levy, as with most Exchequer revenues in Ireland, is not earmarked or hypothecated to any particular item of expenditure. When devising a budget, revenue lines are available to fund particular costs.

In regard to DB schemes and double insolvencies, agreement has been secured for certain liabilities to be met by the Exchequer. I am not aware of any double insolvencies, which is when an employer and scheme go under, in the pipeline. Under this legislation, the State's liability is being capped at 50%. In the case of the Waterford Glass workers, whose case was adjudicated on by the European Court, as they made their original application in the Irish courts, they are now back in the High Court. Obviously, this case has to be proceed. I understand it is being done with some diligence but none the less these types of legal cases take time.

In regard to the subject matter of the amendment, which provides that the levy shall not be applied to a defined contribution pension, levying or taxing is a policy matter for the Minister for Finance. This is a decision of the Minister for Finance in the context of a number of liabilities which the State has, including the jobs initiative and, specifically, the 9% VAT rate in the hospitality sector. I will draw the Deputy's concerns to the attention of the Minister for Finance. There are a number of people who pay on a defined contribution basis. There is a point in making provision for the type of collapses that are occasionally experienced. Obviously defined contribution schemes are on a different basis. The funder of last resort in cases such as Waterford Glass, which thankfully are rare and exceptional, is the State. The State must resource such cases through the broad measures of taxation, levies and so on.