Simon Harris (Wicklow, Fine Gael) | Oireachtas source

I thank Deputy Donnelly for his amendment and for the engagement on this issue. As the Deputy outlined, in last year's budget and in the subsequent Finance Act, the Minister introduced an additional levy of 0.15% on pension fund assets for 2014 and 2015. He did this, in the main, to continue to help fund the jobs initiative, launched in 2011. The measures included, in particular, the VAT reduction to 9% on tourism-related activities. They have been successful in both protecting and creating employment in the economy and it is an initiative the Minister is eager to continue. The original 0.6% levy on pension fund assets ended this year and the 0.15% levy will end after next year. We can give an absolute assurance on that matter. As the Minister made clear in his 2015 Budget Statement last month, without the pension fund levy, there would have been no reduction in the VAT rate to 9% on tourism-related activities.

As he outlined, Deputy Donnelly's proposed amendment would reduce the pension fund levy for 2015 in half to 0.075%. The 0.15% levy is forecast to yield approximately €135 million this year and, therefore, the Minister fears that by acceding to Deputy Donnelly's amendment, he would have to find more than €67 million in additional taxes elsewhere to make up the shortfall. Therefore, he does not propose to accept the amendment.

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