Joe Costello (Dublin Central, Labour)

The decision by the Fianna Fáil, Green Party and Progressive Democrats Government to impose a pension levy on all public sector workers and only on public sector workers is wrong and fundamentally unjust. It should be rescinded and the Government should go back to the drawing board. The public sector constitutes less than a quarter of the workforce. In the first instance, the equitable approach would be to spread the pain equally and not target one sector. Second, the levy is unfair because it is payable on all earnings, including overtime and allowances, and not just on basic salary. Third, low paid public sector workers who receive tax relief at 20% will pay a disproportionate contribution compared to higher paid workers who will receive tax relief at 41%.

Fourth, there is a false belief abroad, fuelled in particular by sections of the media, that the public sector makes no contribution to its pension fund. All public sector workers are already paying a compulsory contribution and most are paying 6.5% of their salary, which, in the case of health care workers, meets the full cost of their pensions without any State contribution. This new levy will double that contribution for the vast majority of public sector workers and they will get nothing in return. Fifth, and what is probably most infuriating for public sector workers, is that they were in no way responsible for the economic mess and recession we are in at present, yet they are the only ones singled out to pay the price.

The legislation was published today and it is even worse than expected. Public sector workers will be required to pay 3% on the entire first €15,000 earned. Those are the people on the minimum wage and those who qualify for family income supplement. They will be required to pay 6% on the next €5,000 and 10% on all earnings over €20,000, regardless of whether they earn €20,000, €25,000, €100,000 or €1 million. That is an outrageously unfair tax. The lowest paid are the hardest hit.

Government mismanagement of the economy and bankers' greed and fraud are the real culprits. Anglo Irish Bank appears to have been rotten to the core and contaminated Irish Life & Permanent and Irish Nationwide Building Society, yet there is no sign of the fraud squad or the Criminal Assets Bureau being called in to investigate. The Government voted down the Labour Party's proposal that the Director of Corporate Enforcement would ask the High Court to appoint an officer with extensive powers to investigate the banks.

Where is the Green Party? While Green Party Members are making angry noises in the media, they have not yet taken a stand against any of the Government's unfair and unjust policies or on this issue. In fact, a Green Deputy or Minister in this Chamber is now a rare sighting. People will soon be sending letters to The Irish Times about it. We will not say what bird we are talking about.

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