Terence Flanagan (Dublin North East, Fine Gael)
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Question 66: To ask the Minister for Finance if he will respond to a matter (details supplied) regarding Budget 2012; and if he will make a statement on the matter. [22976/11]

Michael Noonan (Limerick City, Fine Gael)
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The gradual reduction from marginal to standard rate tax relief on pension contributions commencing in 2012 forms part of the fiscal consolidation measures in the agreement with the EU, IMF and the ECB over the period 2011 to 2014. When introducing the temporary pension scheme levy to pay for the Jobs Initiative on 10 May last, I gave a commitment to examine the issue of reducing the tax relief on pension contributions to the standard rate.

The Government is carrying out a Comprehensive Review of Expenditure in order to provide it with a set of decision options to meet the overall fiscal consolidation objectives and re-align spending with the Programme for Government priorities.

The Review is due to be completed by the end of this month. The Government will then examine the findings and, in consultation with the EU, IMF and ECB, will introduce fiscally neutral changes to the detail of the EU /IMF Programme of Financial Support for Ireland while maintaining the overall commitment to fiscal consolidation. I will examine the scope for any change to the proposed standard rating of tax relief on pension contributions in that context.