Jerry Buttimer (Fine Gael)

I thank the Leas-Chathaoirleach and I will get to the punchline in a preambling sort of way. Somebody who is a contract researcher in an IT or university, who is not a contributor to the public sector pension scheme but who pays into a PRSA privately, is expected to pay the levy. Must all other employees in this sector, regardless of whether they contribute to the public sector pension scheme, have to pay the pension levy? If that is the case, all part-time lecturers, contract researchers and a number of other workers in this sector are included. As Senators White, Coffey and Norris stated, that makes a mockery of the Bill.

Is there an extra contribution to take into account the fact that public sector pensions are better than private sector pensions? The Bill, as constituted, is pitting private against public and creating class warfare. Is the levy being applied to non-pensionable staff? If so, it is not a pension levy but a further tax on all public sector workers, as Senator Alex White implied. If so, it is compounding the problem in that the Government is being doubly unfair in respect of public sector employees who do not qualify to join a public sector pension scheme. This must be clarified. My perusal of the HEA document confirms what I have just said.

A person of officer grade in the public service with 40 years' service will receive 50% of his final salary as a pension and a person who is not of officer grade with 40 years' service will receive 25%, yet both are being asked to pay the same levy, with the lower paid of the two receiving a much smaller pension. Is this equitable?

My final comment concerns the widening tax base. Public servants, in some cases, pay 6.5% of their salaries towards their final pensions. Given the 1% levy introduced in the budget and the further increase in taxation proposed, this amounts to a minimum hike of 7.5%. Is this justifiable bearing in mind that the affected are paying taxes and already contributing towards their pensions? It is a misnomer to say they are not doing so because they are. What are the Minister of State's views on this?