Government action on jobs wholly inadequate despite €2bn private pension raid – O’Brien

Date: 09/11/2011
Posted by: Darragh

Government action on jobs wholly inadequate despite €2bn private pension raid – O’Brien


Fianna Fáil Seanad Group Leader & Spokesperson on Finance Senator Darragh O’Brien has described the Government’s actions to tackle unemployment as disjointed and wholly inadequate despite its widely criticised €2bn raid on private sector pensions.

Senator O’Brien said “the latest Exchequer and Live Register figures reveal a very serious situation that the Government is showing no interest in addressing. Tax revenues are €184 million below target at the end of October and this is a deterioration on the figures are the end of September when taxes were €160 million ahead of profile. This is a massive turn around.

“The exchequer figures also show that income tax is €125 million below target and with a shortfall of €83 million in October, the fifth monthly shortfall in a row. VAT is now significantly €383 million, or 4.5% below profile on a cumulative basis.

“Pensioners have seen their funds or pension payments depleted by as much as 10% as a result of the pension levy and there has been no resulting boost in employment which was used to justify the pension levy. The latest Live Register figures show the number of people signing in October increased by 2,700 to 447,100.

“The Government was widely informed of the ill-advised nature of the pension levy but ploughed ahead regardless. The unease with the implementation of the pension levy was even expressed by Minister Joan Burton but as has been the case with this Government, genuine concern is brushed aside with remarkable ease.

“The crisis facing our country and those seeking employment requires real solutions. However the reality is that the stability that was brought to the tax-take by tough but necessary decisions was put in danger by a new Government motivated by positive headlines and continued popularity.

“The imposition of the pension levy is not generating employment. It has however generated €460m for the Government to help mask the gaping hole it has opened on in the tax figures. The pain for pensioners will not be short lived. For instance those covered by pensions at Tara Mines have seen their benefits slashed by 10%. There are many more examples of pension funds being put under extraordinary difficulty as a result of the levy.”