Terence Flanagan (Dublin North East, Fine Gael)
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Question 139: To ask the Minister for Finance his views on a matter (details supplied) regarding the pension levy; and if he will make a statement on the matter. [2143/12]

Michael Noonan (Limerick City, Fine Gael)
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1The Jobs Initiative introduced last year brought forward a number of targeted sectoral measures and tax/PRSI changes designed to assist in employment generation, to provide opportunities for those who have lost their jobs and thus generate confidence in the economy. These included a new second reduced VAT rate of 9% aimed primarily at the tourism sector, a halving of the employers PRSI rate until 2013, small amounts of additional current and capital expenditure aimed primarily at "shovel-ready" projects and increasing the number of available educational, training and up-skilling places.

In order to fund the various measures, the Government introduced a temporary levy on funded pension schemes and personal pension plans. In 2011 this raised approximately €463 million. Over the 2011-2014 period the Jobs Initiative will be budgetary neutral. It is the case, however, that the pension levy was expected to generate a net gain to the Exchequer in 2011 as the yield was expected to more than offset the cost of the other measures introduced. The range of measures outlined in the Jobs Initiative are being or have already been put in place by the relevant implementing Department or agencies.

The Government is currently finalising a comprehensive Action Plan for Jobs which will set out further measures to be taken in 2012 to support job creation. This Action Plan, which complements last year's Jobs Initiative, will be published in the coming weeks.