Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

Inné, d’fhógair an Rialtas go raibh sé ag dul a thabhairt faoiseamh cánach do na daoine is saibhre sa tír seo. Ní hé seo na mílte daoine ach cúpla duine a bhfuil ciste pinsin de €2 milliún acu cheana féin. Tá sé ag dul a thabhairt faoiseamh cánach de €320,000 do na daoine seo. Tá an Stát ag iarraidh gnáth-cháiníocóirí na tíre seo cuidiú leis na daoine seo ciste pinsin a bheith acu suas go €2.8 milliún.

Yesterday, the Minister for Finance, Jack Chambers, announced that he was going to give a massive tax break that would only benefit the wealthiest members of our society, namely, those in receipt of gold-plated pensions. This is the only tax measure that the Minister, Deputy Chambers, has announced in advance of budget 2025. It speaks volumes about the Government’s priorities, in that its priority is to ensure that it looks after those who have massive gold-plated pensions.

When the Minister, Deputy Chambers, appeared before the Committee on Budgetary Oversight and I asked him how much this would cost ordinary taxpayers, he did not have a clue, but we know that it is estimated to cost hundreds of millions of euro. Those in receipt of gold-plated pensions are already well catered for in this State, courtesy of ordinary workers and families. They can build up pension pots of as much as €2 million, and for every €1 they put in, the taxpayer gives them 40 cent back. This allows them to retire at 65 years of age on pensions of €70,000 and tax-free lump sums of €200,000. Most people can only dream of pensions of this scale – indeed, most workers are only paid a fraction of these amounts, never mind their pensions on retirement – but the Government wants to go one step further for those at the top. Fianna Fáil and Fine Gael want the taxpayer to fund these gold-plated pensions until they reach €2.8 million in size. Asking those who work in Tesco, nurses, gardaí, firefighters and teachers to help build up the pension pots of those are the very top to the tune of €2.8 million in order that they can retire on State-supported pensions of €100,000 per year is madness.

These are gold-plated pensions, as even where the taxpayer contributes 40% to these funds, it is only the select few who can afford to put that amount of money into their pension pots. This massive tax break is only for the wealthiest individuals with pensions already amounting to more than €2 million. The Government is planning to give these individuals a massive tax break of €320,000. That is how much an individual will benefit as a result of the Government’s decision yesterday. It is crazy. These are not the ordinary people I mentioned who work hard on shop floors. These are people with pension pots of €2 million already and who have a pension entitlement of over €70,000. Meanwhile, those on the State pension languish and are left with crumbs off the table.

This choice by the Government would be wrong at any time, but it is definitely wrong when we are dealing with a cost-of-living crisis and workers and families are struggling. I am not surprised by Fianna Fáil and Fine Gael because we always know where their priorities are.

How many people are captured by this? Last year, 254 people had pension pots of more than €2 million. The average pension pot is approximately €111,000. People can only dream of €2 million, but the Members across the way do not believe that is good enough. That is why they are asking ordinary people to help build up the pensions of the elite until they get to €2.8 million and giving them a €320,000 tax reduction. What does the Minister say to the taxpayer who is struggling to pay bills? Why is the Government asking such taxpayers to contribute – that is what is being asked of them – 40% to pension pots for the elite, reaching €2.8 million?

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