Naive Noonan allowed pension firms to pass tax to customers
Published 17/06/2011 | 05:00
The decision by Michael Noonan, Minister for Finance, to allow pension companies to pass on the 0.6pc jobs tax to their customers was a direct contradiction of the views he had expressed in the Dail 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 0.6pc "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 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 solving the State's problems, was in marked contrast to the Emergency Measures Bills imposed on nurses and midwives which dramatically reduced their pay through the pension levy and pay reductions along with the Universal Social Charge and other tax increases.