Joan Burton (Dublin West, Labour) | Oireachtas source

I am just talking about what we have inherited. My view on tax incentives is set out in the programme for Government. I had this discussion over a long period with Fianna Fáil's former leader Mr. Brian Cowen when he was Minister for Finance. Finally, after several years of debate with me, he commissioned a study that indicated there were extraordinary pension pots of €20 million to €30 million arising from the Fianna Fáil tax schemes.

The programme for Government implies the State should not tax-subsidise pension provision where pensions in excess of €60,000 per year are provided for. Most pensioners listening to us will know that a pension of €60,000 per year is a very handsome one for most. The tax relief, therefore, should be targeted at lower and middle income earners. The Deputy will be aware that in the budget proposals for this year the Minister for Finance has agreed to bring forward legislation, commencing next year, to address the structuring of reliefs.

The Deputy referred to alignment. The issue is very simple. Only 51% of people have made private pension provision. Those who are not covered include women, lower paid workers and those who change jobs frequently. The latter leave behind any pension entitlement they accumulate in a given job. The proposal made in the report, with which I broadly concur, is that pension relief should be targeted at the people in question. I hope the Deputy will be able to agree with this.

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