Brian Lenihan Jnr (Dublin West, Fianna Fail)

There is a large number of questions to deal with. Deputy English raised a large number of issues relating to the responsibilities of the Tánaiste and Minister for Enterprise, Trade and Employment. However, I thank him for their constructive character in the context of job protection in the current economic situation. With regard to financial arrangements, in the announcement made by the Government there has been a refocusing of the capital programme on home insulation and the building of schools.

With regard to finance for small and medium-sized businesses, the Deputy made a constructive suggestion which I will take up with the relevant Minister. I will also take up the constructive suggestion made with regard to the overseas aid budget with the relevant Minister.

Deputy Sherlock is concerned about repossessions and mortgages. I agree with him. He pointed out that, to date, the rate of repossession has been low. In the context of the recapitalisation discussions with Allied Irish Banks and Bank of Ireland, we have raised the question of limits on repossessions and those institutions have been receptive to our representations. However, the real difficulty relates to other institutions that do not subscribe to the code of practice on repossessions. The work of the regulator is targeted at those institutions and at bringing them within a compulsory scheme. In the absence of full agreement by those institutions to comply with any scheme, I will bring in legislation if necessary.

Deputy O'Donnell raised the issue of the unfairness of the levy. We have a very fair and progressive tax system here and the pension levy is consistent with that principle. Working examples relating to actual pay demonstrate that, as a rule, the total deductions as a percentage of gross pay after the pension contribution are greater for those on higher rates of pay rather than lower rates of pay.

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