David Cullinane (Sinn Fein)

I oppose the section and support the recommendation. I do not agree with previous speakers that private pension holders accept the logic of the levy and see its benefit in terms of jobs. I have spoken to many of them and they are fearful. They are fearful because they know private pension funds across the globe have been affected by the crash of recent years. That is the reality. Many are very fearful about what they will get back from their funds when they get older. They have put much hard-earned money into funds and much of it has been lost.

Let me cite, as I did yesterday, the example of the Waterford Crystal workers. They lost almost all of their pensions and are now taking the Government to court because of a failure of the State to implement properly an EU directive that would have afforded some protection with regard to pensions. The directive, as the Minister of State will know, was challenged by the British Government. It was supported at the time by the Irish Government. It compels states to have some insurance protection built into private pension funds. The failure of the Government at the time to implement the directive meant the workers in Waterford Crystal were exposed and lost most of their pensions. Many people with private pensions saw what happened to the Waterford Crystal workers and are wondering what will happen to them. They ask how many more funds are insolvent. There is a very real fear among many private pension holders about the value of their funds. I support the recommendation. While I oppose the levy, the cost should be absorbed by fund managers, not by pension holders for the reasons I have given. The Minister of State needs to appreciate the real fear among private pension holders.

I agree with Senator Jim Walsh that we should not frighten people from investing in private pensions. I support universal pensions and would prefer if all State money went towards supporting public pensions such that the very wealthy could not put huge sums of taxpayers' money into pension funds. We want to see equity across the system.

The Minister ought to be aware of the very real concern and fear that is evident. Anything that adds to that fear is wrong and the levy could have this effect. Many people to whom I have spoken are very concerned about the imposition of the levy and also about their pension funds. Perhaps the Minister of State will refer to this, in addition to the EU directive, which is important.