Brian Cowen (Laois-Offaly, Fianna Fail)

There is a clear need to improve the position of the public finances as a matter of urgency. The proposed pension related levy is necessary to help restore balance. It is the first of a series of measures that will have to be taken in our effort to ensure our economic survival and ability to compete. There is no doubt that it represents an imposition but the public service pay and pensions bill comprises more than one third of all public expenditure. There is simply no alternative to making savings in this area and we believe the fairest way to do so is the arrangement whereby those who earn most pay most.

The big problem we face is increased joblessness. People are losing their jobs in this recession, which is exacerbated by other problems such as difficult trading conditions in the UK. Many workers are losing their jobs altogether and some of them have private pension provisions which are being considerably reduced as a result of the pensions crisis. This is one aspect, although it is not the only response of the Government. The scale and magnitude of the problem is far greater than even this imposition could seek to address. I ask that the urgency of the situation be recognised by everyone so that we can send the right signal to international markets about our determination to put the public finances in order. This is the first, necessary, step in that regard.

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