Éamon Ó Cuív (Galway West, Fianna Fail) | Oireachtas source

I have a few random thoughts. The State contribution is proposed at one third of the employer contribution. My understanding is there will be no tax relief on that. At present, if one is paying 40% tax, one gets 40% off. Does Mr. O'Brien think it is an anomaly in the scheme that the State contribution is, and will continue to be, bigger for those who are wealthy, not only because they pay more in and, therefore, get more tax relief, but because it will be at a higher rate of 40% on marginal income? Is that an anomaly that should be addressed? Mr. O'Brien said he is against the upper limit of €80,000. What is the reason for that? Will he explain why he is against it? It does not seem a very high limit to me. Many people earn €80,000, especially in the high-tech industries, at a very young age. What is the thinking on that?

Mr. O'Brien made a valid point about employers paying. However, that is a query I have about the system of paying in today and getting out in 30 years and having inflation biting in to that.

We were given figures on what people will get in 30 years but they forgot to tell us that there would have to be an adjustment for inflation to get the real value.

I understand the introduction of pay-related PRSI for jobseeker’s allowance is under consideration. Most of the people who will be caught in auto-enrolment will not be drawing from the system for 30 years. The State, the employer and the employee will pay into it. For approximately 30 years, or perhaps 25 years on average because some people will not be caught by auto-enrolment at a young age, it will all be money going in with nothing coming out. However, if we improved the pay-as-you-go system, which is very efficient, perhaps even making it pay-related, it would pay money out in real time, which would mean it is inflation proofed. That would not be as good for the pensions industry, of course, because it would not get its hands on wads of everybody’s money. Those are just a few random thoughts. What is Mr. O’Brien’s view on them?