Enda Kenny (Mayo, Fine Gael)

Part of the reason for introducing the measure is because there has been no clear strategy from the Government on how to sort this out. It brought forward its budget last year and made proposals which it was forced to reverse because of public embarrassment and pressure. It launched another economic document before Christmas and now we are where we are.

The question I asked the Taoiseach was whether he considers the proposals from the Government on the pension levy to be fair and balanced. I will provide three examples. In regard to single taxpayers, John earns €15,000. His net reduction in take home pay will be €450, or a cut of 3%. His cousin works up the road and earns €19,500. His net reduction in take home pay will be €105 because given the nature of the taxation system, he pays 0.5%. A single public servant who earns €36,400 will have his or her pay reduced by €1,769 per annum, whereas a single person earning €40,000 will have a reduction of €1,649. The take home pay of a married person earning €45,400 will be reduced by €2,537, whereas if one earns €55,000, one's take home will only be reduced by €2,403. These are clear anomalies in a system that is not fair or balanced.

Yesterday, I listened to 250 public service workers whose anger was focused on the unfairness and imbalance of this measure. There is no desire for social unrest or industrial disputes. The Taoiseach rightly said last week that he is prepared to listen and, if possible, to tweak the scheme to allow for progress. In view of the anomalies which impact on thousands of cases of low paid workers or at the lower end of the public sector and for those above and below the marginal rate, in respect of whom a difference now applies, is the Taoiseach prepared to tweak the proposal put forward by the Government in the interest of fairness and balance and to avoid social unrest, industrial disputes and frustration and consternation?

What is the Government's accurate assessment of the savings to be made from the scheme? There were reports of €2 billion, a figure which was subsequently reduced to just over €1 billion. What is the actual figure as assessed by the Government?

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