Sir, – John McDonnell ( October 3rd) more than adequately expresses the unfairness of the ill-conceived pension levy on private pension schemes which was introduced by this Government.
It is worth recalling the comments of Michael Noonan when the then minister for finance Ray MacSharry introduced a levy on the capital gains on pension funds in 1988. This was a levy on profits, not capital. As opposition finance spokesman he opposed the measure, which would have taken less than €20 million per annum from funds and said that it would drive funds into insolvency. Mr Noonan’s levy is now taking almost €700 million per annum from pension fund capital.
If the Minister’s promise to end the levy this year is not kept there will be a strong sense of betrayal. There may not be mass demonstrations outside Leinster House, but I can assure the Minister that we are waiting in the long grass. – Yours, etc,
CYRIL THOMAS,
Blackrock, Co Dublin.
Sir, – The so-called four-year pension levy is – for some of us – anything but four years. Given an existing €1.2 billion deficit, and an obligation to pay a further €80 million levy over the four years (2011 -2014 ), my pension fund trustees have decided to spread the cost of the levy over each member’s lifetime. In my case I’ll pay €600 a year for the rest of my life. While one hesitates to cite equity and ethics and such-like remote concerns, might the Government in its own self-interest seek to introduce some element of mitigation such as tax credits for those affected? – Yours, etc,
PAT HENNESSY,
Howth, Dublin 13.