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.