Jobs and pensions
I wish to reply to David Kavanagh's recent letter regarding our proposal to exclude pension funds investing significant amounts in job creation within Ireland from the Government's 0.6pc levy.
The assets of the country's private pension funds amount to approximately €70bn, and perhaps a little more in light of the equity recovery.
The idea is that funds would be incentivised by exemptions from the levy if they invested 5pc-6pc of their assets in job-generating enterprises within the Irish economy.
The investment could be secured in a number of ways, including the possibility of project bonds issued against the assets of the enterprises or projects themselves.
The scheme could even be structured in such a way that the Government could take the levy initially and rebate it as projects delivered jobs, thus generating revenue and savings for the Exchequer.
Most schemes, including the SIPTU pension fund, would be attracted by the opportunity to avail of exemption from the levy, enabling them to retain the amounts involved on their balance sheets. Five to 6pc of total assets would run to about €4bn.
According to the Construction Industry Council, each €1bn invested in infrastructure, for example, would generate in the order of 10,000 jobs.
Jack O'Connor
General President
SIPTU
Liberty Hall,
Dublin 1
Irish Independent
