Fine Gael backbenchers demand 'super levy' on pension pots

on 13/11/2012 00:00:00

A trio of deputies has sent a draught Oireachtas Bill to Finance Minister Michael Noonan setting out a mechanism to impose the 70% tax on the pensions of those earning above €150,000 a year.

Eoghan Murphy TD stressed the move would not just be limited to bankers, but would target other ex-public sector workers, like former taoisigh Bertie Ahern and Brian Cowen as well.

Mr Murphy said he believed that the whole of the Fine Gael party agreed with the super levy in principle, but could not say what backing the specific 70% tax would receive.

"We are trying to be constructive and offer positive solutions.

"Everyone is very angry with the scale of the pension packages bankers in bailed-out banks are receiving at present," he said.

The TDs believe that emergency financial legislation on pay and perks in the public service can be invoked to push through the reform without damaging the rights of individuals under the constitution.

When asked why Mr Noonan had not come up with the measure himself, Brendan Griffin TD said: "He can't be expected to come up with everything."

Backbench pressure for Fine Gael to take a tougher stance on the contentious issue of the Croke Park pay deal saw Mr Murphy and colleagues receive a public slap-down from Mr Noonan.

The finance minister and Taoiseach Enda Kenny have insisted that they are legally unable to move against generous pension packages because they cannot break the specific contractual arrangements involved. The controversy has dominated the Dáil in recent weeks and was fuelled again at the weekend when it emerged a seventh person at the nationalised former Anglo bank was earning more than €500,000 a year.

Opposition parties have also demanded that the Government use emergency financial laws to rein in pensions.