Jim Walsh (Fianna Fail)

I am about to conclude. While it is being argued that the increase in the pension levy is an imposition on all those of us who work in the public sector, it should be noted our contributions are only between 13% and 15%, approximately, of our salaries. The cost of our pensions is in the order of 42% to 43%. Therefore, we are only contributing a fraction of the overall cost.

Let me outline my solution. I would not have gone near the pension fund. The Government is wrong in this regard and I intend to oppose the section as a consequence. If the Government had applied a 2.5% levy for four years on those who work in the public sector, it would have brought in an equivalent sum of money. This would have been fairer because those who are better paid than many in the private sector - the productive sector - would then be contributing towards the cost on a short-term basis. What the Government has done has created many anomalies, only some of which have been touched on in the House. Some, including the one mentioned by Senator Darragh O'Brien, are important to consider. For example, many employers are shifting from defined benefit to defined contribution schemes. The Government's approach will only encourage this trend, which is not to be welcomed.