Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

Deputy Richard Boyd Barrett can speak for himself.

Who will end up paying this levy? Will the banks simply be allowed pass it on to customers by way of increased fees, charges or higher variable interest rates? We know we do not have a properly functioning banking system and we must ask whether this measure will help. At a time when we are trying to attract more competition in the banking sector in Ireland I must ask whether the introduction of this levy will make it less likely we will be able to attract competition into the banking sector here.

The Minister is removing the restriction on the use of deferred tax assets for NAMA. This is a big win for the banks and I would like to see much more detail on it. If the banks return to profitability, which I hope they do, what will this mean in terms of taxation they will not have to pay? We need more information on this because it would seem there is a far bigger win for the banks by way of tax they will not have to pay from the levy announced today.

While people are coming to terms today with budget 2014 the truth is last year's budget has not finished with them yet. Next year hard-pressed homeowners will be faced with a double local property tax charge. From the Minister's point of view I am sure he views the local property tax as a major success, bringing in €50 million more than expected and with Revenue achieving a very high compliance rate. The full year's charge being levied on 21 March next year will really hurt people and could have significant implications for the domestic economy. I remain of the view the tax is unfair in that it does not take into account ability to pay in any meaningful way and it is being levied even on those who cannot afford to make their mortgage repayments.

The Minister announced a significant change on pension tax relief. I wish to ask on a point of equity whether it applies to the highest echelons of the public service. For example, will the pension tax relief of a person continuing to pay into a pension which will yield in excess of €60,000 be also curtailed? I take it that it will, from the Minister's response.

The Minister has announced that the lower rate of VAT will be retained in the tourism and hospitality sector. That decision will be warmly welcomed by a sector that has undoubtedly benefited from the announcement. However, I have to raise the issue of the pension levy. The Minister has announced that the levy is to end, but the booklet states it is to increase. In 2014 it appears it will go from 0.6% to 0.75% and then down again to 0.15% in the following year.

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