Mr. Fergal O'Brien:

Yes, we have received a lot of feedback on this. It is hard for any of us to know. Even the actuaries will disagree on what the magic number is. When we look at the proposal here and the proposed contribution rates for similar schemes in the UK and elsewhere internationally, they appear to be on the high side. We know they are higher than in the UK. The main feedback we are getting is around the step effect. To go from 0% to 6% in employer contributions and employee contributions within a decade or so is a significant increase in labour costs. The wider concern - and my colleague, Ms McFadden, has been tracking many of these issues - is around what is also adding further to employer labour costs. There is statutory sick pay, additional leave entitlements and a whole range of factors that are layering costs on employers but they are not coming about in a co-ordinated way. If we cannot give certainty to employers regarding the required auto-enrolment contributions and potential labour cost impacts that are coming from other Government policies, that will lead to uncertainty and will impact on competitiveness. My colleague, Ms McFadden, may wish to comment on those issues further.