Richard Bruton (Dublin North Central, Fine Gael)

That does not seem to be reflected in the Finance Bill as we have seen it. My amendment is a reflection of an amendment I tabled last year and relates to the inequity of the current arrangements whereby people in defined contribution pension schemes are forced to purchase annuities, whereas self-employed people investing money in retirement funds have the flexibility, once they have other income that provides an income to the value of at least the non-contributory old age pension rate, to put their money into a fund and manage it according to different rules. There is clear discrimination, therefore, against people paying into a standard contributory scheme, which is the predominant type of scheme for people currently. People who pay into defined contribution schemes are being discriminated against by being forced to purchase these annuities.

The Government is being forced, due to the collapse of interest rates and the deplorable value in the purchase of an annuity, to make the provision it proposes for two years. However, I raise the wider issue of why it would treat some people as fish and others as flesh. It seems that the former Minister's, Charlie McCreevy's, approach towards the self-employed, allowing them flexibility, should be applied equally to people who pay contributions towards pension funds that are equally subject to the vagaries of the market. They should be allowed the flexibility to manage them as best meets their needs. I will be interested to hear the Minister comment on the wider issue, as well as on the two-year moratorium on what I regard as an unfair rule.

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