Dáil debates

Tuesday, 24 February 2009

Financial Emergency Measures in the Public Interest Bill 2009: Second Stage (Resumed)

 

9:00 pm

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)

Ba mhaith liom an deis seo a ghlacadh go háirithe chun ceist mná, i gcomhthéacs an cáin pinsin nua, a ardú. I dtús, tá sé de dhualgas orm an cáin nua a cháineadh amach is amach. Níl an cáin cothrom. Is pionós í orthu siúd atá taréis obair a dhéanamh chun córas poiblí ceart a sholáthar dúinn. Má fhéachaimid ar na oibrithe ar a bhfuil an cháin dírithe, tá sé soiléir go gcailleoidh iad siúd atá ar na leibhéil is ísle pá — múinteoirí, banaltraí, gardaí agus oibrithe udaráis áitiúla — airgead, mar aon leo siúd atá ar leibhéil níos airde. Tá an Rialtas taréis glacadh leis go mbuailfidh an cinneadh seo na hoibrithe Stáit is leochailí. Cá bhfuil an cothromas ansin? Tá na boic móra ag éalú ó aon pionós, in ainneoin go bhfuil flúirse airgead agus acmhainní acu.

This tax, the pension levy, is punitive and unfair. It allows the rich in society to get away scot-free while lower paid public servants are screwed. It is a long time since I saw such anger in response to a Government decision and it comes alongside the decision to end special needs education, which affects nearly 600 children, the slashing of the HSE's budget, the debacle of last October's smash and grab on medical cards for those over the age of 70 and much more over the past several months.

Other Deputies have spoken about the hurt that exists and outlined how this levy will impact on public servants. Given the limited time available to me, I will concentrate on the levy's impact on women, who make up a large proportion of the public sector workforce and a disproportionate number of teachers and nurses. The Government's proposal will have disproportionate and negative consequences for many of these women because they will never qualify for the full pensions for which they are paying. This makes a lie of the Government's claim of imposing a pension levy. It is a pay cut.

Over the past few weeks, I have received numerous e-mails from women who left the public workforce to contribute to society in a different but equally valuable way by rearing their children and caring for their other dependants. One correspondent quit her professional career to rear her three children but her time out of the workforce is not recognised by the Government. Her contributions towards a State pension will be calculated from when she began working in 1967 until her retirement in 2016, for a total of 47 years, despite the fact that she was not in the workforce between 1972 and 2001. She will only have 15 years of service when she retires. Based on her current salary, her pension contribution is €42.82 per week. Her current pension entitlement is €48.25 per week. Her new contribution will be €82.99 with no increase to her ultimate pension. Another correspondent has worked for Offaly County Council since 1994 on a job-share basis in order to take care of her family. This means she has only 25 years of service. She pays €1,450 per annum for superannuation but the new levy will cost her €712 net per annum. I could provide many more examples. These women have been trying to persuade the Government to see sense. This measure will disproportionately affect those on the lower earning scales. No account is taken of ability to pay.

I also received correspondence from a staff nurse in the eye and ear hospital who stated that fewer than 5% of nurses and midwives receive a full pension. Service of 40 years is required for a full pension, which comprises half-pay and a lump sum equalling 1.5 years of salary. The majority of nurses do not perform 40 years of continuous service because of their studies or child rearing activities. She wrote that she is not a violent woman by nature and that she pays all her taxes and has never been to prison. However, she was working a night shift when the Government announced its proposals and found herself walking behind a doctor who she knew earned more than €300,000. She suddenly realised that he will pay only 1.5% more than her in the levy. She did not know whether she wanted to inflict an injury on the doctor or the Ministers who are protecting him and themselves by reducing the levy on all those who earn more than €100,000 while penalising those on middle and lower incomes. The Government still has a chance to do the sensible and decent thing by withdrawing this new tax.

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