Brian Hayes (Dublin South West, Fine Gael)

On Committee Stage in the Dáil, the Minister made several changes to take on board concerns as expressed. The main changes are considered necessary to facilitate a more efficient implementation and collection process for the levy and to minimise the administrative cost burden on pension funds. There is now a single valuation date of 30 June, in relation to most pension funds' assets, in each of the four years of the levy. There is also now a single payment date of 25 September for each of the four years as opposed to two payment dates in each year as originally envisaged. Those considered and well thought-out amendments, which were brought forward in the other House, came as a result of a considerable degree of consultation with industry representatives. The Government listened closely to what they had to say and was in a position to bring forward those amendments.

The Minister is aware that the pensions sector is also concerned, given the temporary levy, about the commitment in our agreement with the EU/IMF to reduce the tax relief on pension contributions starting next year. This issue will be examined in the context of the results of the comprehensive review of expenditure currently being undertaken by the Minister for Public Expenditure and Reform, and any resulting scope for fiscally neutral changes to the EU/IMF agreement.

I outlined the four measures in the Finance (No. 2) Bill. I will note for completeness that there are two further sections: section 5 which relates to the care and management of taxes and duties and section 6 which refers to the short title and construction of the Bill. These are standard entries.

I should perhaps also note at this point that the Finance (No. 3) Bill was published on Thursday last. It provides for changes to existing tax legislation as a consequence of the passing of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010.

It is fair to say in passing that the work undertaken by this House over a period of four years greatly helped the passage of that legislation which has enshrined firm rights for persons who now want to legally recognise their cohabitation in the context of Irish domestic law. I should recognise the enormous contribution of this House over a four-year period in allowing the legislation to progress as it did.

That Bill will allow registered civil partners to receive the same tax treatment as married couples in respect of income tax, stamp duty, capital acquisitions tax, capital gains tax and VAT. In addition, the Bill allows for the taxation consequences of the redress scheme for opposite-sex and same-sex cohabiting couples provided for in the 2010 Act. The Finance (No. 3) Bill comes before Dáil Éireann next week.

After three successive years of declining economic activity we can look forward to positive growth which we fully expect will accelerate as we move into 2012 and beyond. The recently published Stability Programme Update forecasts positive GDP growth this year, a welcome development following the past three years of substantial contraction of the Irish economy.

For 2012, the Department of Finance projects that GDP will grow by 2.5%, with average growth of 3% per annum possible over the period 2013 to 2015. Underpinning this expected rebound in economic activity is a strong outlook for goods and services exports. This is in line with expectations - a recovery in a small open economy such as Ireland's typically takes this form.

The jobs initiative comprises a set of measures that represent our first steps on the road to improving the economy's international competitiveness and promoting job creation. The Finance (No. 2) Bill 2011, which is before the House today and tomorrow, is intended to deliver the taxation measures outlined in this initiative.

I commend the Bill to the House.