Jerry Buttimer (Cork South Central, Fine Gael)

I am acutely aware of the concerns expressed by many people in regard to the affects of the pension levy. The people we represent believe those who landed our country in this economic position have walked scot free from their well paid jobs with lump sums and pension pots which are grossly excessive without being held to account for their actions. We need to restore fairness and justice to society. We must ensure that revenue raising measures go hand in hand with policies that will facilitate job creation and will hold rogue bankers to account.

The proposed pension levy is a temporary measure which will assist in the rebuilding of our economy. It is about our country and our people. The growth of our economy and the rebuilding of Ireland will help to restore the value and importance of being Irish and will help us as a nation. I welcome the Minister's statement yesterday that the Government will not raid investment funds or deposit accounts. I welcome his assurance to the House yesterday that the Government has no plans in this regard. It is important that the Government allays people's fears, driven in part by idle commentary and pure political gamesmanship by Fianna Fáil in particular.

The ideological pursuit of a low tax based economy to the exclusion of all other considerations is but one of the policy decisions that has forced the hand of this Government to implement difficult proposals. As part of the drive to push down the tax base, many reliefs and shelters were created. Unfortunately, these were designed to benefit those on excessive incomes and to allow those with more than ample personal wealth to further increase their net worth without paying a fair level of tax.

Much has been said and written during the past number of years in regard to property tax reliefs, which amount in value to €460 million. Yet, much less has been said about tax reliefs applicable to pensions, which amount to €3 billion. The tax treatment of pensions permitted high earners to syphon-off large parts of their income, thereby paying little tax while many, in particular on PAYE, could not benefit to the same extent. The pensions industry grew and developed on the back of these large tax reliefs. This lobby group has encouraged everyone to invest in their products, many of which are now not worth a fraction of their previous values. In the last two years, some of the tax reliefs have been clawed back but, given the economic morass in which we now find ourselves, there is little option but to continue to row back on some of the existing reliefs. It is important to recognise that a 0.6% levy is a temporary step.

I welcome the Government's decision to suspend the air travel tax. Airlines must now respond to the Government proposal. Rhetoric must be matched by action. The Government has honoured its commitment. The airlines must reciprocate. I call on Ryanair, Aer Lingus and other carriers to act in the national interest, enter into an agreement with the Government and not confine themselves to empty words and big advertisements. The time for talk is over. They must now act.

I welcome the Bill. However, a number of people in the pensions industry have raised legitimate concerns with me. Time has not allowed me to e-mail them to the Minister of State, Deputy Brian Hayes, or to the Minister. I hope they can be considered before Committee Stage.

This is a good beginning. It is not ideal, but the Government has shown it has a plan and a vision. At the core of that plan and vision is job creation and the protection of the Irish people. I welcome the Bill.

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