Tommy Broughan (Dublin North East, Labour) | Oireachtas source

I thank the Minister of State for his comprehensive response, with most of which I do not agree, and for his illuminating comments on the PSPR. People are conscious of the fact that public sector pensioners are on fixed incomes. As time passes and as increasing numbers of utility charges, new taxes, etc., are introduced, people in the mid to late 70s and upwards - even those who previously worked in the public sector - are finding the going very tough. I do not believe one side is being set against the other. What happened in this instance was that there was a grotesque breach of faith in respect of people with private sector pensions. These individuals made a commitment in the past and just because he was of the view he could do so, the Minister imposed the levy on them. For the reasons outlined, people now feel incredibly hard done by. It is deplorable that, as a result of the recent budget, the levy will be increased in 2014 and again in 2015.

I do not believe the Minister of State has addressed this matter. He has referred to the fact that we do not have hypothecated taxes, which is generally the case. I supported the continuation of the 9% VAT rate for the hospitality sector, particularly in view of the overall position in the economy. However, measures of this nature should be kept under review. We have never carried out proper cost-benefit analyses of tax expenditures and that has led to us making very bad policy decisions on pension pots and other matters. I reiterate my opposition to section 71.

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