Paudie Coffey (Fine Gael)

I move amendment No. 3:

In page 6, line 11, after "servant" to insert "and excludes non-pensionable payments".

This amendment refers to non-pensionable payments which would take into account payments such as overtime, which is a large part of the remuneration of public servants. It highlights another anomaly with regard to this Bill which has been pointed out clearly in the Lower House. Public servants, those working in the country's local authorities, VECs, the Health Service Executive and many other bodies already pay up to 6.5% of their salary each year towards their pensions. However, I am told civil servants such as those working in the Department of Finance and those who helped to draft the Bill pay only 1.5%.

To further compound the insult, VEC staff who are not eligible for any pension scheme under the superannuation arrangements are being asked to pay this levy. Non-permanent staff who the Department refused to admit to the pension scheme will also be levied and the letter that has come down from the Department states that the money is to be used for Exchequer funds, not pensions. We need clarity on this because public servants are asking these questions and this is where the issue of unfairness arises. Those of us on this side of the House realise that urgent action is required with regard to the public finances, but what seems to be the problem is that there is no fairness in this Bill. It is a flawed Bill with too many anomalies. It seems to be ill thought-out.

Senator Norris mentioned that farmers are exposed through the farm waste management scheme, referred to later in the Bill. This side of the House has called on the Government to consider providing a system of tax credits for farmers who will be exposed under the Bill. Will the Minister of State and the Department of Finance introduce a system through which farmers can claim against tax credits interest paid on bridging loans because they will receive their grants over three years rather than in the once-off payment they were promised originally by the Department?

Farmers understood they had a contract with the State by which they were approved for grant aid under the farm waste management scheme. Now they are exposed to huge loans, in some cases in excess of €100,000, and cash flow is seriously restricted on those farms. This Bill will restrict it further because it will put off the full payment of account by the Department of the grants they were allocated. This is most unfair and needs to be highlighted. This Bill treats farmers in a very unfair way in this regard and could put many of them out of business. What is the Minister of State's view on this?