Brian Hayes (Dublin South West, Fine Gael)

I was just making the point that in 1988 a levy was introduced. In 2002-03, a levy was also introduced, but both those levies were later removed. This is a temporary levy or tax. One of the reasons the Pensions Board has not replied is that, despite all the comment about this 0.6% levy, the bigger issue for the pensions industry is the very point that Senator Reilly referred to earlier - whether people will continue to be able to get tax credits on their pension cover at the marginal rate.

I remember the comments made by the pensions industry before the general election, but I think people could bear the levy. This issue has been blown out of proportion, given that historically there were other levies in place that came to an end. We have given a commitment that this one will come to an end in 2014. It is being introduced for the specific, net purpose of encouraging employment within our domestic economy and getting people back to work. People are being asked to pay a small amount on a current net value asset, which is their pension pot. The Minister and the Government have said that, as set out in the legislation, there are ways in which this matter can be absorbed with a bit of commonsense, particularly concerning pension schemes that are doing well. I understand where the Senator is coming from, but I cannot accept the idea that we can tie the hands of administrators by the imposition of recommendations Nos. 9 and 10 in respect of the specific requirements that would be inserted. For that reason I have to oppose both recommendations.