Terence Flanagan (Dublin North East, Fine Gael)
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Question 284: To ask the Minister for Finance the position regarding the pension levy (details supplied); and if he will make a statement on the matter. [1339/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As outlined in the National Recovery Plan 2011-2014 (published 24 November 2010), the Government decided, in the context of present budgetary constraints, that it would be appropriate for some retired public service pensioners to make a contribution to required financial adjustments. This decision was taken having regard to the gap between the burden being borne by those currently in public service employment (where the pension related deduction (PRD) and pay reduction have impacted) and those in retirement. The Government also took into account the general reduction in prices: CPI is now at 2007 levels, whereas public service pensioners received general round increases of 2% in June 2007, 2.5% in March 2008 and 2.5% in September 2008 – providing an increase in the real value of public service pensions.

Accordingly, in Budget 2011 (on 7 December 2010) I announced that public service pensions above €12,000 a year would be reduced by an average of 4%. The reduction required legislation to be passed before the end of 2010 and, having being passed by both Houses of the Oireachtas, the Financial Emergency Measures in the Public Interest Act 2010, giving effect to the measure on and from 1 January 2011, was signed into law on 22 December 2010.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 285: To ask the Minister for Finance further to Parliamentary Question No. 130 of 14 December 2010, if he will outline the consideration given to the upper Shannon rural renewal scheme; and if he will make a statement on the matter. [1348/11]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The mid-Shannon Corridor Tourism Infrastructure Investment Scheme provides for capital allowances to be available in relation to tourism infrastructure facilities. The allowances are for qualifying construction and refurbishment expenditure incurred in the qualifying three-year period. The Scheme is subject to the measures relating to property-based reliefs as announced in the Budget.

Further detail in relation to such schemes will be included in the forthcoming Finance Bill.