Broughan uneasy at levy on pensions

LABOUR TD Tommy Broughan expressed concern about the impact of the jobs initiative levy on those drawing occupational pensions.

He urged Minister for Finance Michael Noonan to consider putting in place a legislative mechanism to stop administrators passing on the levy to those currently receiving pensions.

“We heard from many deputies on all sides of the House about the outrageous administration costs of pension funds,” Mr Broughan added.

He said the 0.6 per cent levy on private pensions to fund the jobs initiative was clearly the most controversial aspect of the Finance (No2) Bill 2011.

Many of his constituents receiving defined benefit pensions were upset at the prospect of a reduction in their current entitlements.

“These are senior citizens who are not receiving massive pensions, but who spent decades working for modest wages in private or public companies such as Cadburys, in my Dublin North East constituency, or Dublin Bus, and hope to enjoy their retirement on their modest pensions,” he added.

Joe Costello (Lab) said the jobs initiative was a significant step towards getting the country back to work.

“It is not a cure-all and does not pretend to be such, but it is evidence of the Government’s serious commitment to tackling the horrendous problems the country is facing in a fair and balanced way,’’ he added.

Finian McGrath (Ind) said: “The Labour Party should hang its head in shame, particularly given its false promises during the general election campaign.”

Colm Keaveney (Lab) accused Mr McGrath of being “the selective socialist who sits with a technical coalition composed of deputies, some of whom have a pathological hatred of working people’’.

Michael Moynihan (FF) said there was a myth, perpetuated for generations, that people on social welfare were creaming it.

“The reality is that the vast majority of people on welfare, including those who have lost their jobs in recent years following the economic crash, are anxious to return to work as soon as possible,’’ he added.

Dan Neville (FG) said there was nothing so devastating as being unemployed and not having an opportunity to obtain employment.

“When I was elected to the Oireachtas, I came off the Live Register, having had a senior position in a company up to two years previously,” he added.

“While I did some consultancy work, for much of that time I signed at my local Garda station every Monday and travelled every Friday to get unemployment benefit to feed my wife and four young children.”