Pension firms should bear cost of levy

THE decision by Michael Noonan, Minister for Finance, to allow pension companies pass on the 0.6% jobs tax to their customers, whether contributors or beneficiaries, was a direct contradiction of the views he had expressed in the Dáil debate and a capitulation to Industry pressure.

Mr Noonan, in responding to an amendment put forward by Seamus Healy, Tipperary South Independent, has said a levy of 0.6% “leaving out all sorts of claw-backs in terms of income tax, seems to be totally within the competence of the industry to absorb without any particular effect on people in pension schemes.” Mr Noonan also in his response said that he did not want “such a provision written into the Bill but I hope that funds would make a contribution.”

It is my opinion, that expressing such a hope, that Corporate Ireland would make contributions to the State’s problems was in marked contrast to the Emergency Measures Bills imposed on nurses and midwives which had dramatically reduced their pay through the pension levy and pay reductions along with the universal social charge and other tax increases they have had to absorb.

The Government, in spite of Mr Noonan’s apparent vocal support for the campaign mounted by INMO in a letter to all members of the Oireachtas, used the Government Whip to ensure that the bill went through leaving it up to the companies themselves to decide whether or not they passed on the charge.

There is now a true test of who is willing to pay in Ireland towards the State’s economic woes. I agreed with the Dáil comment of Shane Ross, that the pensions industry is an “untapped and untouched gravy train and a sacred cow”. Corporate Ireland has paid nothing extra to alleviate the burden the bankers have imposed on the State and now the bankers first cousins are to be allowed pass on this levy to their customers. Customers of those pension companies must now unite and say no.

The INMO will continue to campaign to have pension companies shoulder the cost of this 0.6% levy. We will, in the coming days, be meeting with our AVC providers for nurses and midwives and we will do everything within our power to ensure that AVC contributors and beneficiaries do not have to burden the cost.

Dave Hughes

Deputy General Secretary Irish Nurses and Midwives Organisation Dublin 7