Dara Calleary (Mayo, Fianna Fail)

There are, however, people with greater inside knowledge than some of the commentariat and they are concerned about the pension levy. Over many years, the political and financial systems have tried to encourage people to make provision for their pensions. It was a shared, all-party decision to allow substantial and generous tax incentives in this regard. However, this decision was taken in the knowledge that the country is facing a pensions time bomb. It was taken as an acknowledgement by the Oireachtas and Government that we had a responsibility to encourage people to provide for their pensions.

However, the Government's proposal has undermined much of that work, whether intentionally or unintentionally. Security and guarantees were offered with regard to pension provision. Management fees and pension provisions were high and the performance of pensions has been disastrous for many people in the past number of years. However, this was outside the Government remit as these were commercial issues and decisions in which neither the Government nor the political system had any input.

This levy is a Government raid, an attack on what has been a suggested and agreed policy on the security of pension provision. I do not doubt the Government's and in particular, the Minister's personal intentions that it is only a four-year, temporary levy. I say that in the knowledge there are few more honourable people in this House than Deputy Noonan. The Department of Finance has a different interpretation of the word "temporary" than the dictionary definition. Over decades, many levies were introduced as temporary measures but which are still being levied on all our pay cheques to this day. If we could align the definition of "temporary" in the OxfordEnglish Dictionary with the Department of Finance definition, I would be more reassured. I acknowledge that the Minister has done that.

The pensions time bomb is still in existence. Those who work in the private sector today have had to make provision in order to be able to maintain their lifestyles in retirement. This has been done in the face of losses which are beyond their control. I fear that this levy will add to the sense of mistrust about pensions and to the attitude that somebody else will look after it, that we can live for the moment. Unfortunately, circumstances for many people mean they cannot afford to make that provision. We have undermined it with the introduction of this levy.

The Society of Actuaries in Ireland could not be said to be a part of the celebrity commentariat. The society has noted that these changes will have the cumulative effect that people will lose faith in the stability of the system and will lose the confidence to commit to future pensions savings. I acknowledge the society has a vested interest because it represents actuaries and this is their day job but it will be the challenge for this and future Governments to restore confidence in our pension provisions. This is a significant challenge but some smaller challenges may perhaps be addressed on Committee Stage.

I wish to comment on the initiatives for the tourism sector.

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