Pearse Doherty (Donegal, Sinn Fein)
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I understand the recommendations around annual contributions and age limits. Reading recommendation 8.5, which is about the standard fund threshold, it discusses benchmarking and uses the word "appropriate". That is vague. What is an appropriate retirement pension? It does not suggest it is appropriate now or you could read it as it needs to be increased. Therefore, the regressive nature, in which the top 5% get 60% of the benefit of this tax relief, or €700 million, is not tackled in the report. While the tax-free pension lump sum, which has been mentioned several times, is generous at €200,000, the next €300,000 is taxed at 20%. The principle of exempt-exempt-taxed is out the window. You get tax relief at 40% as you contribute and if you structure your lump sum in a way that you draw down €500,000, you pay nothing on the first €200,000 and 20% on the remaining €300,000. Who can do that? It is not people on middle incomes, it is people at the very top who are able to put a lot of money in. They get a benefit at the end of the day. It is not exempt-exempt-taxed.

My other question concerns the help-to-buy scheme. The commission recommended that the scheme be allowed to expire at the end of 2022, which has not happened. There have been other reports that called for the help-to-buy scheme to be ended. There was a priority question yesterday to the Minister for Finance and it was very clear that he is committed to the help-to-buy scheme. The Taoiseach is very clear he is committed to the indefinite maintenance of the help-to-buy scheme. Will the witnesses outline their reasons for this recommendation, if we are to believe so many people would be worse off if it was not in place?