Leo Varadkar (Dublin West, Fine Gael)

The 0.6% levy on private pension funds is a temporary measure and will only be in place for three to four years. It brings in approximately €450 million per year, which would not pay for metro north. To be clear, the cost of the project is significantly higher than that, even when spread over a prolonged period. The money that is being raised from the 0.6% levy on private pension funds has gone into a number of measures and not simply the VAT reduction. It also has gone into a reduction in employers' PRSI, which has not yet been assessed. Most people accept that reducing employers' PRSI, thereby reducing the cost of employing someone, will protect jobs and potentially will allow for employment to be increased. While the Government must make this judgment call, it is not yet necessary. It was introduced last June and has only been in place for less than five months. The VAT reduction will be reviewed at the end of 2012 with a view to the 2013 budget. The short answer to the Deputy's question is that the levy is temporary but is not sufficient to create significant jobs on the capital side. In addition, the VAT reduction will be reviewed for the 2013 budget.

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