Mary Lou McDonald (Dublin Central, Sinn Fein) | Oireachtas source

Am I right in saying that this provision applies not just to redundancy payments, but also in the event of retirement? I agree with Deputy Fleming that there is, if not a universal view, certainly a growing consensus in this Chamber that issues of fair and equitable taxation for high earners must be addressed. The Government has not done so in this budget but it is starting to take baby steps in that direction. The same applies in respect of pension pots and lump sum payments to people.

Why is the figure set at €200,000, which seems very high? While I agree with ending the top-slicing practice, why pitch it so high? The Tánaiste, according to himself, is all about fairness and a fair sharing of the burden. Therefore, I would have expected the Government to have pitched it substantially lower at approximately €100,000, which I understand is the figure Labour Party backbenchers regard as high earnings and a very significant sum. I do not know if the Tánaiste will have the capacity to answer that this evening.

It would be remiss of me not to mention other lump sum payments, including public sector pensions which are funded from the public purse. A new pension regime has been introduced for new entrants into the public service but a small number of people are still on the most extraordinary pension arrangements. The TLAC terms, as they are called, still apply to a large number of senior civil servants - Secretaries General of Departments, including some who started on this Government's watch. It is staggering that a Government that makes any pretence at fairness and equity within the public sector has not moved very swiftly to stop those practices, stop the additional years and stop the big lump-sum payouts. There is a huge contradiction in the Government's approach. From this resolution, I take it the Government is conceding that things need to be done about large lump sums, although I believe it has pitched the level too high. It further emphasises all the things it has not done and that it is not politically willing to take on.

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