Brendan Ryan (Dublin North, Labour) | Oireachtas source

Section 5 is the first of a number of sections which give effect to income reductions for certain categories of people who are in receipt of social welfare. The Minister for Finance, Deputy Michael Noonan, announced on budget day that subsidies for pension funds which deliver an income of more than €60,000 per year will be capped. This cap, which is projected to bring in €250 million in a year, is not due to come into effect until 1 January 2014. If this measure were brought in sooner, on 1 July, for example - which independent experts have indicated is entirely possible if the political will is there - it would bring in €125 million next year. I realise there would be an off-set for the levy that is currently there, but that could be adhered to for the remaining months of the year. Even if the introduction of the cap were delayed to 1 September 2013, it would potentially bring in €80 million.

In the context of the number of cuts that are being proposed in the legislation today, has the possibility of bringing forward the pension subsidy cap been considered seriously at Cabinet and, if not, why not? It is a budget adjustment that has been agreed with our partners in government, so it simply seems to be a question of timing. Given that the respite care grant is not payable until June, there is time to consider whether an earlier implementation of the subsidy cap might obviate the need for a reduction in it and other income supports.

In the area of child benefit, for example, €125 million would go a long way towards obviating the need for that cut as well.

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