Paul McGrath (Westmeath, Fine Gael)

We will not oppose this resolution either. It is timely that this should be introduced. Up to now we had total inequity and a certain amount of inequity will still remain regarding investment in pensions. A person aged 50 or more on the average industrial wage of €30,000 can invest 30%, €9,000, in a pension fund tax-free. A person earning €300,000, like those we were discussing in the previous resolution, and who is aged 50 or more, can invest 30%, €90,000, in his or her pension fund. There is a total inequity in that arrangement.

The restrictions the Government is now imposing will still leave the system strongly tilted towards the very rich. I wonder whether the proposed limit is adequate to balance the inequity that may exist. To what extent has the Government considered the amounts that should be permitted to be invested in pension funds? I understand it takes capital of approximately €1 million to generate income of €60,000 per annum, which is a reasonable amount. The cap the Government is introducing is €1.25 million. We will not be opposing this timely resolution. Perhaps at some later stage when there is a greater awareness of pensions, etc., it might be made more equitable.

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