Pension levy will have a devastating effect

AS a public servant I stand to lose out financially as a result of the proposed pension levy.

However, I would be happy to contribute in this time of crisis to help the economy get back on its feet if I thought the Government capable of a carefully considered, equitable approach to sharing the pain, as it were. I cannot support the pension levy because it is neither equitable nor properly thought out.

This proposal ignores the basic principle of the multiplier effect in an economy. Money spent by one consumer generates income for someone else who, in turn, can spend money elsewhere and so on.

This multiplies the effect of spending across an economy. To remove so much discretionary spending at present will inevitably have a reverse effect just when the economy is already reeling.

Public servants, for example, will not be able to support local restaurants, hairdressers, etc. We simply will not have the discretionary income. Small businesses will suffer a devastating effect on revenues.

There will be job cuts and closures which will force more people onto the dole — as a direct result of the Government’s ill conceived approach.

This will end up costing the Government a fortune in increased social welfare payments.

This is no less than panic legislation and panic thinking. It is not a solution, it will just make things worse. Mr Cowen, if this is all you can think of, if this is really your best shot, perhaps it is time to stand down and hand responsibility over to somebody else.

Dr Brendan Richardson

The Spires

Cobh

Co. Cork