Michael Noonan (Limerick City, Fine Gael)

It is a very small imposition when compared with the huge generosity of successive Administrations to the pensions industry in providing relief at the marginal rate of tax. This is a generosity that has been pinpointed by the IMF and EU agencies as not to be allowed to continue. That is why the industry came to me and offered the levy. This is a reasonable levy.

The lobbies involved will claim the levy will not work, ruin the industry and is unconstitutional. We hear the same arguments when any imposition is introduced. The Government got legal advice in the normal way and it was applied when this proposal was drafted. The provisions can be spelled out in more detail in the forthcoming finance Bill. A certain amount of flexibility is still available. I am prepared to talk to the industry on that basis. However, I want it to be honest about this debate instead of making extravagant and outlandish claims which do not stand up to scrutiny.

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