Richard Bruton (Dublin North Central, Fine Gael)

Mine is a much more conservative, measured and limited scheme that would only apply up to the relevant ceilings of the income tax code for those whose income is not taxed at the 41% rate. While we had a thorough airing of the matter, we ought to do this. As I said in our discussion on the annuity reform, it is important to start the process of reform. The Tánaiste seems to be of the opinion that we need to have all the ducks in a line before even doing things that are crying out to be done in the interests of fairness. I acknowledge that there is considerable complexity in this proposal. However, some things are, as they say colloquially, no brainers. Ensuring someone on a low income gets the same tax relief as someone on a high income is a no brainer as far as pension relief is concerned.

I know the Tánaiste will rightly say many in that category cannot afford to set aside money. However, if they do, it is totally unfair for the State to decide that one person will receive far less support towards his or her pension contribution than someone who is much better off. As I said on Committee Stage, according to the last Revenue figure I saw, the total cost of tax concessions to pension contributions was €3 billion, largely shared by a small group and inequitably spread, according to the evidence of the ESRI. If we needed to find revenue to fund this measure, it could be found by restricting some of the reliefs at the upper end in order that we would be able to have something more equitable and fair for people at the bottom end.

This proposal stands alone as a measure that can proceed. I do not believe any of the social partners or any other persons with whom the Tánaiste might wish to consult could possibly object. It has been crying out to be done for years. When we start to see the reality of what the ESRI has done on the basis of estimates, that the benefits of this €3 billion relief are concentrated among such a small number of individuals and the cost is equivalent to what we are paying out in social welfare pensions to thousands of individuals, there will be a hue and cry about how we have dealt with this issue for many years. I, therefore, ask the Minister to accept this worthwhile amendment.

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