Michael Kitt (Galway East, Fianna Fail)

On average, the deduction will be 7.5%. I said at many meetings I attended that we would like to hear whatever proposals other parties, Independent Deputies or other stakeholders have to make on the issue. We can discuss these matters in a co-operative way. One issue raised at many meetings is the divide that has been promoted between the private and public sectors. I very much regret that this element has entered into the debate. IMPACT represents people who work in both sectors and it has said that clearly at meetings it held in Ballinasloe, Galway city and Roscommon over the weekend. At every meeting it stressed strongly that it does not want to see that trend emerging.

Many people in the private sector have lost their jobs while others have taken cuts in salary or reduced working time such as a three-day or four-day week. It is good to know that people are making an effort to retain employment. It is most important that we seek to preserve employment and create jobs wherever we can. I have given examples of where that is happening. Three industries in Tuam have been secure for many years. I refer to Transitions Optical, Valeo Vision Systems and Logstrup, a Danish company. They are on short-time work but they are confident about the future. In fact, Transitions Optical employed 25 people on a permanent basis as recently as one month ago. That is a strong effort which is aided by the Tuam Chamber of Commerce to try to ensure that we have employment into the future. I am happy that small industry has always been a strong feature of the economy in Tuam and that the picture is replicated throughout many other villages and towns in County Galway.

If we can use some of the €8.2 billion we are borrowing for infrastructural projects, for example, to provide more water and sewerage schemes, we will be able to make more progress on the provision of necessary infrastructure that will, in turn, create jobs. We have good infrastructure in many towns. There is a tremendous roads programme throughout the west and the rail corridor is coming into Athenry. We need to concentrate on the water and sewerage programme. I am pleased that my Department has an extra 19% in the Estimate for that infrastructure in 2009.

Many public servants, including nurses, teachers and civil servants employed after 1995, already make a payment towards the cost of their pension. The Minister referred to that aspect. It is important to point out that the pension levy attracts tax relief. Many of the figures quoted in the media overestimated the amount to be paid by individual public servants. An issue arises in regard to people employed in the fire service with whom I often have occasion to deal. I pay tribute to them because they have a difficult task. They have raised the issue of their link with Garda pay and pensions and that is worth examining.

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