Joan Collins (Dublin South Central, People Before Profit Alliance)

Like many others, I have spoken on the jobs budget, stimulus and initiative previously. As other Deputies have stated, the Government put forward a modest jobs initiative only two weeks ago. Although there are no figures put on jobs, the idea that this jobs initiative could potentially create 250,000 jobs is immediately counteracted by the 220,000 jobs being lost in the public sector. This does not make sense when it comes to creating jobs. A national job strategy is needed, with investment from the Government. I outlined in the last debate how the money can be raised and it is a choice the Government will have to make again and again, whether to go after those with no money or those with money. There is plenty of wealth in this country; the rich have got richer and there are ways to take that money from them and for them to contribute to us getting out of the recession, even under the market system.

The briefing paper from the Chief Whip's office states that legislation is being prepared to allow pension scheme trustees or administrators the option to adjust benefits payable under the pension schemes or plans. I have no doubt this option will be used by the pensions industry. I bring to the attention of the Minister the position of the Irish Nurses and Midwives Organisation, which demands the levy should be taken from the profits of the industry, particularly their marketing and hospitality funds. The pensions administration companies have made massive profits for many years, despite huge mistakes when playing the market, which then required huge additional injections of capital to meet pension requirements. There is no necessity to pass on this tax to people who have already suffered pension levies, wage cuts and increased taxes.

Provision for the option to pass on the levy should be removed from this Bill. In fact there should be no levy. The amount the levy will raise could be easily raised by other measures. A substantial amount of income is exempt from PRSI and income levies. We are continuously asked time and again for alternatives so here they are: exemption of capital gains and inheritance and gift tax would raise €290 million per year; exemptions on rental and dividend income would raise €89 million per year; the ceiling on PRSI contributions would raise €120 million a year; and PRSI exemptions on share options would raise €29 million a year. The abolition of those exemptions would provide €500 million without touching anyone's pension.

The amount this levy will raise could be raised by treating income from capital investments and rents in the same way as PAYE income. Having made such a start towards a fairer and more equitable way of dealing with the crisis, the Government might move on to the wealth tax and close off tax breaks that go overwhelmingly to the wealthy and use that money to create a real jobs stimulus package that will put billions of euro into creating jobs. That is the choice this Government has.

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