Thomas Byrne (Fianna Fail) | Oireachtas source

Pensioners were told this pension levy was a once-off for four years. For many of them, the levy has had a permanent impact on their incomes. The cut to pensions in some cases reached 10% and is not just for four years but forever. It goes back to the old law that when one introduces a temporary tax, it turns out to be very difficult to get rid of it later. No matter who is in power, they will be tempted to keep the moneys coming in from this levy.

The Government introduced this levy so that it would be used for job creation. A large portion of it was not spent on jobs, however. Up to €350 million has been washed into the general Exchequer and not spent in accordance with the levy’s purpose. The Government has been strongly criticised by newspaper columnists and the troika on its ability to get people working and the training schemes it offers. Part of the criticism is that the Government did not spend all the moneys from the pension levy on what it promised which was jobs and training.

This pension levy is not just being maintained but increased to 0.75% next year but will be reduced to 0.15% in 2015. Do we really believe that? Do we really believe there will not be pressure from lobby groups to maintain the pension levy to avoid levies in other sectors? Will the Minister give an assurance that this levy will be ended in 2015 or will not be increased to 0.75%? Has the Government looked at the levy’s impact on pensioners? Pensioners, such as those from Tara Mines, were told the levy would be deducted from the pension company’s own profits but that did not happen. They were also told when they met the Taoiseach that they should inquire about it from the Revenue Commissioners, a case of passing the buck. These pensioners should be given more consideration because they got a significant cut to their income.