Chris Andrews (Dublin South East, Fianna Fail)

I welcome the opportunity to speak on this Bill. The purpose of the legislation is to provide for the payment of a contribution by persons in the public service, including Members of the Houses of the Oireachtas and certain other office holders, who are members of an occupational pension scheme or a pension arrangement.

As regards today's investigation on Anglo Irish Bank, like everybody else in the House, I am angry with the behaviour of senior bankers. There clearly was a small, cosy group of business people who felt that regulation was for little people. They felt they were untouchable and if the global financial meltdown had not occurred, they could well still be untouchable. Today's action by the Garda Síochána and the ODCE is welcome but it is and must remain a matter for them. I hope this will be the first step in restoring the trust that ordinary people have lost in the banks and also, it must be said, in the political system. We must allow this investigation to take its course. It would be easy to hit out and name everybody we believe is guilty of these banking crimes. We would feel much better if we were able to name and shame everybody, but it would not necessarily mean that justice would be brought to those who deserve it. These bankers lost their moral compass, but we must not say anything that will let them get away with their crimes. While these issues are linked, the most important issues are jobs and financial stability. This Bill is one step in bringing that stability back to the economy.

The levy will be difficult for everybody to swallow, but it is the least unacceptable form of levy. There has been resistance to the Bill since it was first proposed but implementing tough decisions is rarely popular or easy to do. It is the Government's job to make those difficult choices in the best interests of the country and the economy, regardless of polls. As politicians, we are always cognisant of public opinion but it is important that these decisions are taken without keeping one eye on opinion polls. It has got to that stage. We would neglect our jobs as public representatives if we were to pay too much attention to polls at the expense of making tough decisions, albeit the right ones.

Ireland is facing hitherto unseen economic challenges on an unprecedented scale. We have had difficult times in the past but things have never gone from boom to bust at this speed. It is normal for politicians to try to score political points but it has gone beyond that now. Some people are calling for an election but that would only paralyse the country at a time when every day is important and our reputation within global financial markets must be restored as a matter of urgency. An election would only paralyse the political system and do untold damage to domestic financial markets. The easy option is to call for an election but it would do more harm than good.

As with every other TD, my office has been inundated with calls and e-mails about this levy from concerned civil and public servants. I fully appreciate the challenges the levy places on individuals and families, but it is in everyone's interest that we should deal with this issue responsibly given the problems we face. We must not skirt around the difficulties and there can be no escaping the facts, regardless of how unpalatable they may be. We are in the midst of a global recession whose effects are being felt in every developed country. Ireland operates an open market which, in general, has been positive for us over the past 20 years. It has, however, left us exposed in the current international downturn.

This, coupled with the decline in the construction industry, has meant the economy has deteriorated at a faster rate than anyone could have predicted. The State will have to borrow €18 billion this year at steeper interest rates to finance current and capital spending. As the Minister for Finance pointed out, this equates to borrowing €4,500 for every man, woman and child in the State. The current rate of spending simply cannot continue and savings must be made.

The steps the Government is taking is about protecting jobs and assisting small and medium-sized enterprises that generate employment. They are the risk-takers, create jobs and give stability to society. Bringing down costs is a matter of urgency. Costs across the board must come down by at least 30% to 40%, if we are to be able to compete in a globalised economy. Yes, the pension levy will be difficult for people. However, it is only the first step and there will be significantly greater pain to come for all sections of society.

Some union officials seem to recognise this but others are using out-dated political rhetoric. They need to grasp an understanding of the difficulties the country is facing. Some of them are still reading Karl Marx and using his doctrine. Until now, the private sector has borne the brunt of the economic downturn. In January, 1,000 people a day lost their jobs in the private sector. To claim the public sector is being targeted unfairly is not the case. Workers in the private sector are paying with their jobs. The decision to implement a pensions-related deduction is not easy but it is deemed the most fair and equitable solution. Public servants enjoy significantly better pensions than the majority of workers in the private sector. The benefits are higher and, more importantly, they are secure.

It has been claimed the wealthiest in society are not being asked to contribute their share. In fact, the lowest paid are protected and those on higher incomes contribute most. Currently, 38% of the entire workforce pays no tax at all. It should be noted that 6% of the wealthiest in the workforce pay 50% of all our taxes. Everyone in a position to help must do so. This levy applies to the salaries of all Deputies and Ministers, who have also taken a 10% pay cut already. Other measures will have to be introduced. Those who have more money will have to pay more. The higher tax band will be increased and I would not be surprised if the increase was to be 8%.

If another solution that could deliver the same savings were proposed, it would be considered. Some union leaders, however, are not interested in solutions but rhetoric. The Bill's proposals must be implemented for the good of the country.

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