Tommy Broughan (Dublin North East, Labour)

The 0.6% levy on private pensions which has been proposed to fund the jobs initiative, in section 4, is clearly the most controversial aspect of the initiative and of the Bill. Like you, a Cheann Comhairle, I voted against cuts to pensions by the previous Government, and public sector pension holders have already been hard hit by cuts to their pensions and by levies.

However, many of my constituents who are currently receiving defined benefit pensions have been in touch with me. They are upset at the prospect of a reduction in their current pension entitlements. These are senior citizens who are not receiving massive pensions but who spent decades working on modest wages in private or public companies such as Cadburys, in my constituency, or Dublin Bus, and hope to enjoy their retirement on their modest pensions.

I urge the Minister for Finance, on the next stage of the Bill to look seriously at putting in place a legislative mechanism to stop administrators passing on this levy to those who are currently receiving pensions. We heard from many Deputies on all sides of the House the outrageous administration costs of pension funds. The journalist, Kathleen Barrington, did a fine analysis of this a few weeks ago. That is the area at which we should aim. When the Bill was published, the excellent Oireachtas library and research service confirmed to me that the legislation clearly allows the levy to be passed on to those receiving benefits, at the discretion of the administrator. Is there a constitutional issue here, as there was with public sector pensions?

I warmly welcome everything in the jobs initiative, particularly as it relates to housing, roads and so on. However, it follows from our continuing failure to deal with macroeconomic issues. I commend Deputy Peter Mathews and others who continue to ask the House and the Government to redouble the efforts to achieve a cut in the bailout interest rate. I commend the Tánaiste for what he has done so far in that regard. I urge the Government to look at broadening the tax base, if necessary. My colleague referred to a tax on very high incomes and asset taxes that do not include the family home. There are other ways. Some of our colleagues on the Opposition benches, such as Deputy Mick Wallace, have indicated ways for the Government to respond.

I ask the Government to look closely at the pension levy and see if the jobs initiative can be funded in a way that is sustainable and fair.

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