Maire Devine (Sinn Fein) | Oireachtas source

Tax reliefs on pensions are quite controversial and, as Senator Higgins said, the IMF and the troika were always asking questions about them. On the one hand, they encourage the saving of a pension but, on the other, they can seem to subsidise those of us already lucky enough to be able to afford a pension. Certainly, when we consider that 80% of the relief goes to the top 20%, we would have to question the suitability and sustainability of the reliefs over the long run. Looking at Britain, it has moved to taper off all reliefs over a certain income, which is an angle worth exploring, and this is something we have slightly started to do with PRSI. Rather than a blunt standardisation, the combination of reducing the standard fund threshold and the earning limit that applies to the relief seems a cleverer and fairer way of tackling this issue. High earners should not be subsidised while the savings of other workers are not protected. I thank Senator Higgins for tabling this amendment.