FF claims on pension levy are short-sighted and misleading – Donohoe

6th October, 2011

Fine Gael TD for Dublin Central, Paschal Donohoe, has dismissed claims made by Fianna Fáil in relation to the pension levy as short-sighted and misleading.

“In May, the Government introduced the Jobs Initiative, as a progressive step to address our jobs crisis. In order to introduce the employment creation measures, a levy on pension funds was introduced.

“The Government has always clearly set out that the levy was intended to raise €470 million in 2011 and each year until the end of 2014. The Jobs Initiative document also clearly states that the measures to stimulate economic activity would cost €260 million in 2011 but higher in later years.

“Between now and 2014, the revenue raised by the levy and the costs of the Jobs Initiative will balance out, as the stimulus measures to get people back to work cost more in a full year than the levy raises. Yesterday’s exchequer figures clearly identified the amount of revenue raised by the levy. Fianna Fail’s suggestion that there’s some cloak and dagger behaviour going on here is simply ridiculous.

“It is also disheartening that Fianna Fáil is taking such a short sighted view. This Government is doing everything in its power to pick up the pieces and repair the damage done to the economy in recent years. Rather than misleading nit-picking, a much more progressive approach is needed from all parties.”