Seanad debates

Friday, 27 February 2009

 

Financial Emergency Measures in the Public Interest Bill 2009: Committee and Remaining Stages.

11:00 am

Photo of Liam TwomeyLiam Twomey (Fine Gael)

I will follow the same line of thought as Senator White on this matter. A spokesperson from the Government benches made a big show last night of the fact that we are discussing the Financial Emergency Measures in the Public Interest Bill. However, it is clear that this is an income tax on civil and public servants. I always thought raising taxes was the function of a budget rather than legislation, unless it was intended as a temporary measure or that it included a finite date for its removal. Since the Government is objecting to any limitation being put on the levy, it is, in effect, a tax-raising measure specifically for civil and public servants. There is no basis at all to support the notion of this measure being a pension levy because it applies to all income, including that which is not taken into account when one's final pension is being decided upon, such as overtime or allowances. Therefore, it is not a pension levy in the slightest respect.

There is no evidence that the Government will address any inherent unfairness in the legislation — some of which has been highlighted already — if that becomes more apparent. The Bill does not include any checks and balances because it is an emergency measure so those issues cannot be checked at a later date. If the Government was thinking clearly this measure would be part of a budget and not introduced by means of the Bill.

Many Members on this side of the House have said there is an inherent unfairness in how the legislation will apply to lower paid civil servants. The Government spiel is that it considers it is fair and that one pays more as one's income increases. I do not know whether the Minister's interview on BBC1 was live last night.

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