Feargal Quinn (Independent) | Oireachtas source

I draw the attention of the House to the National Competitiveness Council, which urged us last week to avoid pay increases at this stage because we are losing competitiveness in the economy. It is an important point when we have strike threats coming from different areas. As soon as there is good news into the newspaper that the economy is doing reasonably well, there are demands for pay rises and strike threats in the case of Aer Lingus at a peak period coming up soon.

I asked the Leader to ask the Minister for Finance how many people availed of the offer he made to people, which was a great step in the right direction, to reclaim 30% of additional voluntary contributions, AVCs, in the most recent budget. The benefit is that it puts money into the economy. The money people put into AVCs went in without tax but it is taxed when they take it out. This is a win-win situation for the Government, the Minister and the economy. It puts money into the economy and it gives the opportunity to create more jobs. There are cash-strapped families who could avail of this. They have put money aside but they cannot take it out until the time comes. The Government could do this and the Minister should consider increasing it from 30% to 100% so that people can avail at to benefit the economy.