Willie O'Dea (Limerick East, Fianna Fail)

I take Deputy O'Shea's point that many people in the Defence Forces are not particularly well paid. I will not get into an economic debate about it; suffice it to say the levy applies across the public sector. There are staff in other sections of the public sector who could equally be regarded as not being terribly well paid, yet they must also accept the levy. As the Deputy knows, it is being applied according to a sliding scale such that it rises as one goes up the salary scale. The levy will apply to all members of the Defence Forces.

On the question of allowances, I am aware that allowances for serving overseas are not taxable. Whether the pension levy applies to them is still not decided. It will be a matter for discussion by the Government and it will be clarified when the legislation to implement the levy on contributory pensions is introduced in the House. The simple answer to the Deputy's question is that I do not know as yet.

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