Michael McGrath (Cork South Central, Fianna Fail)

The levy is being passed on to pensioners by way of benefit cuts. We have all heard the Tara Mines story. Many others will emerge in the weeks and months ahead. Existing workers are being asked to pay additional contributions to make up the shortfall. We know by way of freedom of information that this decision was made against the advice of the Pensions Board and officials and that the Minister for Social Protection wrote to the Minister advising against doing it.

I am highly sceptical of the Government's promise to end the levy in four years time. I hope it sticks to its promise. We all know what happens to levies like this, namely, they become embedded in the system. The Exchequer becomes dependent on the revenue and the link which was so clear at the beginning between this levy and the funding of the jobs initiative will become blurred with the levy remaining in perpetuity. I hope I am wrong. Let us wait and see.

Fianna Fáil proposes that instead of imposing this levy the Government should put in place an investment stimulus of at least €5.6 billion over the next four years. The Government's pension fund levy should be ended and replaced with a mandatory investment by pension funds of 4% over four years in the strategic investment fund announced by the Government in September.

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