Brian Walsh (Galway West, Fine Gael)

Deputy Pearse Doherty appears to be speaking out of both sides of his mouth. In one of his earlier contributions, he suggested that a 0.6% levy on the pension fund would discourage people from saving and consequently would place a greater burden on the State in the future because people would not save for their own pensions. However, in his latest contribution, he has suggested the tax relief available on pensions should be amended, as if to suggest that such a measure would not discourage people from investing in their pensions. This is a small measure that is being introduced on a temporary four-year basis and I note these are people who have benefited from highly lucrative tax relief in the past. For example, last year the marginal tax rate was at 41% and consequently, for every €1,000 that an individual invested in a pension fund, he or she received tax relief of €410. The Government now proposes that for the next four years, it will recoup an element of that, namely, €6 per annum from each €1,000, which is a total of €24 over the four-year period, whereas for one year's contribution of €1,000, people will have received €410 in relief. Consequently, it is fair that those who benefited from generous tax reliefs in the past are now asked to contribute a minor sum to support those who are unemployed and to assist in the jobs initiative.

I agree with Deputy Healy's suggestion that pension fund managers be asked to assist in contributing to this levy and I ask the Minister to consider holding discussions with the pension managers to achieve progress in that regard.

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