Kenny denies any 'cover-up' on pensions

THE TAOISEACH denied a claim by the Fianna Fáil leader that he had attempted to conceal a Cabinet colleague’s reservations about the pension levy funding the jobs initiative.

Enda Kenny said he had received a routine letter from Minister for Social Protection Joan Burton, insofar as her views on the impact of the levy on her department were concerned.

He said Micheál Martin’s allegation of a cover-up was “absolute and utter balderdash’’.

Earlier, Mr Martin said he had asked the Taoiseach three times in the Dáil to publish all background material on the levy, adding that he had to put down three Freedom of Information questions on the issue.

“The Taoiseach covered up on this deliberately,’’ he added.

Mr Kenny said that if Fianna Fáil-led governments had not cut back on the Freedom of Information Act, Mr Martin would probably have received a much more exhaustive response.

Mr Kenny said: “I recall then minister Martin, time and again on this side of the House, and particularly at the joint committee on health and children, denying responsibility for not reading his brief about geriatric care for people in nursing homes.’’

The Taoiseach said Mr Martin had stated to the entire world, at the time, that he was blameless for the extraction of what was almost €1 billion.

Mr Martin accused the Taoiseach of running from his question. “I just want information,’’ he added.

Mr Kenny said the Government made no apology for having made a decision to impose a temporary levy on the pensions industry.

Mr Martin said that when the jobs initiative was announced, the Taoiseach and the Government had decided not to publish any supporting documentation on the impact of the €1.8 billion raid on personal pensions.

“This was a direct reversal of the policy that had been pursued for over a decade, whereby all background papers on revenue matters were published online,’’ he added. It had now emerged, he said, that the Taoiseach was informed by Ms Burton in April that the levy could have extremely negative impacts.

“She told him well before the levy was announced that it could incentivise or force some pension schemes to close,’’ he added.

“She also told the Taoiseach that it would disincentivise retirement savings and have negative long-term implications for pensions policy.’’

A Department of Finance briefing received by the Taoiseach had warned that the Government’s policy could seriously undermine the pensions sector.

“This extremely serious information suggests that the actual cost of the attack on private pensions will be very different from that claimed by the Government,’’ he said.

Mr Kenny said the Government was entitled to make decisions about how it might progress matters that were of interest to the people.

“Clearly, the mess the Government inherited, in respect of unemployment and the economy generally, warranted a focus on restoring confidence to the indigenous economy,’’ he said.

Following technical advice from the pensions board, the Government had decided to impose a 0.6 per cent levy on the pensions industry for four years as a temporary measure, bringing in €450 million annually that would be spent on focused areas where employment could be created.

“Deputy Martin’s allegations of subterfuge and issues being kept from people are entirely groundless,’’ he said.

“Any individual minister or department can have views on Government proposals and the Minister for Social Protection, in writing a letter expressing concerns about possible impact on her department, acted quite normally,’’ Mr Kenny said.