Denis Naughten (Roscommon-South Leitrim, Fine Gael)

Section 7(1) states, "Nothing in this Act is to be read as conferring any additional benefit payable, or that may become payable, under a public service pension scheme." Perhaps the Minister might be in a position to clarify a matter that has been brought to my attention. I am aware of a person who earns €36,000, who is the family's sole earner and who has three children. As a result of the imposition of the pension levy and following the payment of family income supplement, there will be a net gain to the Exchequer of €25.38 per week, or €1,319.76 per annum. The difficulty is that this individual is not entitled to a medical card at present but will be so entitled after the enactment of this legislation. Deputy Reilly has informed me that the average cost to the Exchequer of each medical card issued is €1,700. The Exchequer will, therefore, incur a net loss of approximately €400 as a result of the imposition of the levy on the individual to whom I refer. If 5% of those in the public service fall into the same category as this person, there will be a significant loss to the Exchequer.

Has an evaluation been carried out with regard to the implications of imposing the levy on those whose incomes are just above the thresholds that apply in respect of medical cards and certain social welfare entitlements? These people's incomes will now come in below those thresholds and, as a result, they will be able to apply for medical cards and the other entitlements to which I refer. This will have a negative impact on Exchequer returns and runs contrary to the objective of the proposed levy.

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