Fostering self-reliance and a can-do culture are on Minister's wish list, writes Marc Coleman.

Brian Cowen may hold one of the highest elected offices in the state but, in person, he is more like a local bank manager than the Minister for Finance. His friendly but plain demeanour might have something to do with his native county.

"I reflect a part of the country that's down to earth, hard working and common sense," he says without much ado.

At 45 years old Brian Cowen is nonetheless an old hand as a government minister. After the death of his father in 1984, he was elected TD for Offaly aged just 24.

He was appointed Minister of Labour at 32 and has since added transport, energy and communications, health and children, foreign affairs and finance to his list.

"Public service is the motivation for any politician. It has to be. If he or she wants to do the job well, improving the daily lives of ordinary citizens has to be the reason. If that's not your motivation, you won't be let stay in it because people cop on."

Yesterday he presented his second Finance Bill. As well as giving statutory force to Budget measures, it is an opportunity for the Government to tweak the budget and tie up loose ends.

Brian Cowen had already signalled that the Bill would signal an initiative to incentivise greater personal pension provision. Two weeks ago the Pension's Board urged the introduction of SSIA-style matching contributions. The expectations this raised for one-for-one contributions from Government have been disappointed. Yesterday's Bill means that the Government will donate only €1 in €3, up to a maximum of €2,500, implying a maximum annual contribution of €7,500.

This is considerably less generous than the SSIA incentive and less generous than expected.

Has the Government prioritised electioneering over adequate pensions coverage? "That's a construction put on it but it doesn't affect my thinking," Cowen responds.

As far as he is concerned, one out of three ain't bad. "This is a specific initiative aimed at maturing accounts, a one-off incentive for people to provide for their pensions. We've seen people in the past failing to acquire that habit and we've asked here if we can provide something to help them."

But for many, particularly in the pensions industry, this Bill will be a case of should've been, could've been, but wasn't.

An exit tax refund will be created alongside the €1 for €3 bonus as an alternative to normal pensions tax relief for those on the lower rate of income tax or none. Cowen feels that those on the higher rate are already served well enough. "For those on the 42 per cent tax rate, there are already good incentives to invest in pensions."

The measure leaves out people who do not hold SSIAs, but Cowen emphasises that this measure doesn't close the door to more comprehensive measures.

"We're coming forward at this time with this specific review and that's without prejudice to what Government will ultimately decide on pensions policy."

The Finance Bill also aims to deliver Budget promises to end perceived unfairness in the tax system by beefing up Revenue powers. The Minister said he was proposing measures to ensure there were proper data systems in place to facilitate "automatic reporting requirements" by financial institutions of interest paid to customers resident in the State.

He is also introducing rules forcing people to notify Revenue of schemes they are using to reduce tax liabilities or face the prospect of a levy as well as back tax should Revenue later learn of the scheme and decide it is not legitimate. "Here the informing principle is equity."

Cowen hopes his Finance Bill will kill the lingering public perception of his party as a servant of wealth and privilege.

Nobody objects to more equity in the tax system. Or do they? Last December Cowen announced his intention to abolish the remittance basis of taxation. Initially designed to attract overseas-based executives with needed expertise, remittance allowed them to pay tax in Ireland only on that portion of their income brought into the State.

The American Chamber of Commerce in Ireland protested and prominent business interests hoped that this decision would be revoked. Cowen was unmoved and the Finance Bill copperfastens his decision. "What motivated us was what was becoming the widespread use of this remittance basis of taxation across a range of economic individuals.

"The original intention was to incentivise specialised management people coming over to help us set up financial institutions but it became so widely used that it had to be closed off. That's in the best interests of the integrity of the system."

The reference to the integrity of the system leads us to discuss the build up to this week's social partnership talks. Cowen defends the partnership process against any suggestion that it is unrepresentative. "We're all there as actors in the economy to try and achieve a consensus on how to manage the economy and how we create the resources to meet some of the policy objectives.

"Over the past 20 years we've tried to improve it as well as recognising some of its constraints and successes. It has been around social partnership where we have got consensus. Taxpayers are represented by the Government."

But does he agree with assertions made by the ESRI earlier in the week that public servants are overpaid? He says that the newly appointed second benchmarking body will address relativities, and that no-one should prejudge its outcome. "Clearly if these things are established - and the ESRI and others will be making their views known to the review body - then these things will inform the recommendations.

"I don't think anyone expects to see the kind of increases that emerged the last time when it was the first use of a new method. Also, the review body will be taking into account pension provision and making sure that is factored in."

But, if the ESRI is right and public pay is indeed higher than private sector pay, will he agree to downward benchmarking? "We have to wait for the review body to report on all of these trends. I don't expect that we will go with a recommendation with pay cuts."

After two years of emphasis of social inclusiveness, though, Cowen is willing to strike a note that is a little more private-sector oriented than his "socialist" boss. Perhaps he senses that the Government has leaned too far towards social partnership

"We want to foster a sense of independence and self-reliance, a can-do culture. We're seeing that now in young people. There is no sense of a limited horizon, that your expectations shouldn't be high. This country as changed in every way, in confidence and achievement. Thankfully we now have a policy mix that reflects the ability of people to go out there and do it."

I remind him that all taoisigh since 1987 had previously served as minister for finance, and that, apart from Bertie Ahern, he is the only Cabinet minister with those credentials. Is it a tradition he sees himself upholding?

"When that opportunity arises my colleagues will decide whether I'll be a refusenik or not. From my point of view I've gone far further than I ever expected to." Modest to boot. That's Offaly people for you.