Thomas Pringle (Donegal South West, Independent)

I want to comment on amendments Nos. 32, 33, 35 and 36, in the name of Deputy Healy. The aim of the amendments is to limit or restrict the extent to which the pension funds can pass on the levy in a way that would decrease the benefits pensioners receive. I suggest they should not be allowed to pass the levy on at all. The Minister said earlier that his intention in tabling amendment No. 30 was to ensure pension funds do not pass on these costs in a disproportionate way. I do not think that goes far enough. As I understand it, if a pensioner is part of a group scheme and is receiving a pension of €20,000 per annum, his or her scheme will need to have a value of over €600,000. If the 0.6% levy, which in this case would amount to €3,600, were passed on to the pensioner in full, his or her annual pension would drop to €15,400. That would be an 18% reduction in his or her annual pension. Some of the pension firms will probably absorb some of the costs but it is expected that pensioners will see an 8% to 9% reduction in their benefits on an annual basis because of this levy which is something that has not been highlighted or heard in any of statements by the Government.

The Taoiseach stated that the levy is merely 60 cent in every €100. That might be the case but the outworking and impact of it for individual pensioners will mean they will see an 8% to 9% reduction in their pensions on an annual basis. These proposed amendments are an attempt to ensure that pensioners are protected from this levy and that they do not see such large reductions in annual income through their pensions. I would urge the Government to be stronger in terms of its amendment to ensure that the pension companies cannot pass on this levy in full to their pensioners and those who benefit from the schemes. It is not enough to state that the attempt is to ensure that it is not passed on disproportionately. Some companies will be ruthless and will try to pass on as much as possible with the result that pensioners will see significant reductions in their income.

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