Mr. Aidan McLoughlin:

Could I clarify the comments made in respect of tax relief because it has caused some confusion? The point I am making is that essentially we do not have tax relief, rather we have tax deferral. If I agree to put €100 into a pension scheme for Mr. Phelan from which he will draw down in ten years' time and it grows to €125 in that period of time, the State gives tax exemption on the way in and tax exempts the €25 that grew there. However, if one ignores the tax-free lump sum, it will then tax in full the €125 when it comes out so it will get all the tax. The only decision made is when the tax will be paid. The only actual tax relief it gives where it does not take tax is on the tax-free lump sum. It says that this is exempt. The rest is all tax deferral. Whatever goes into a pension scheme will come out as taxed unless it comes out as a tax-free lump sum. There is no-----