Jonathan O'Brien (Cork North Central, Sinn Fein)
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Question 48: To ask the Minister for Finance if the EU-IMF programme requirement to reduce private pension tax reliefs will be adhered to in budget 2012 and, if so, if he will provide details of same. [27675/11]

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. Once completed, 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.