Róisín Shortall (Dublin North West, Independent) | Oireachtas source

I have raised the issue of the failure to fulfil the promises made relating to the SFT, especially as these are directly related to the increase in the levy. That is the whole point. The Government incurred a shortfall of €130 million as a result of not doing what it had promised to do in respect of high-end pensions and it made up that shortfall by increasing the levy on persons with small pensions by 0.15%. There is a direct correlation in this regard, namely, a new measure to raise €135 million being introduced to meet a shortfall of €130 million. The two are absolutely interconnected. Not only is there an issue with regard to a conflict of interest for the people who designed this measure, it is also the case that these individuals are not affected by the levy. It may be stated there have been previous cuts. I accept that is the case and that everybody has experienced these cuts. However, the measure before the House will be used to hit the lowest earners on the smallest pensions in order to benefit those who are on the highest pensions. That is the sum total of what is involved.

The 9% VAT rate seems to be having a positive effect in certain areas. However, there are other areas in which it is not justified. For example, this rate of VAT relates to the fast food industry at a time when public policy should be moving in the opposite direction. It also acts as a subsidy for lap dancing clubs. People on small private pensions are actually subsidising this tax break for these sectors. There is no justification for this.

I ask the Minister of State to confirm that the increased levy of 0.15% which will be applied in 2014 and 2015 will be removed in 2015.

See this speech in context