Seán Fleming (Laois-Offaly, Fianna Fail)

I am intrigued by the Minister's response. Some weeks ago the Government announced the imposition of a levy of 0.6% per annum on private pension funds, amounting to 2.4% over four years. That levy will impact on the ability of the Eircom pension fund to pay its pensioners and the Minister is saying that this shortfall will effectively be underwritten by his Department. This is completely new information to me.

Arising from the imposition of the new pension levy, what other categories of pension funds will the Department underwrite as a consequence of reduced resources being available to pay pension liabilities? The Minister will probably say the figure is indeterminate and I accept that he cannot provide the information today because the legislation is not yet enacted. However, I ask that he come back to the House with clarification of this matter and that the Department contact the Eircom pension fund to ascertain the extent of the possible exposure even before the pension levy is imposed. Perhaps the State's liability was well known at the time but I do not recall being made aware of the information. It is emerging now that we seem to have given some underwritten guarantee to the pension fund of a private company which made a great deal of money for certain individuals before it was privatised. We are all aware of its current financial difficulties and that it has changed hands repeatedly. My concern is that there will be a severe temptation for shareholders to raid the pension fund if they know any shortfall will be underwritten by the Irish taxpayer. The Minister must tease out this issue from the perspective of the shortfall or potential liability, as well as the contingent liability. In particular, what will be the cost to the taxpayer that must be picked up through, or with the consent of, the Minister's Department or the line ministry, to make up for the shortfall now existing in the aforementioned pension fund on foot of the pension levy the Government introduced a fortnight ago? I ask the Minister to begin to tease out this matter.

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