asked the Minister for Finance the reason old age pensioners are being taxed on the increases in their pensions which they will not receive until June next; and if he will make a statement on the matter.

I have been advised by the Revenue Commissioners that recipients of the non-contributory old age pension are not liable to income tax because the tax allowances and reliefs to which they are entitled should exceed their total income. Similarly in the case of persons in receipt of the contributory old age pension who have no other income, no liability to income tax arises.

Where the recipient of a contributory old age pension has income from other sources, the income tax allowances and reliefs available against that other income are restricted to take account of the pension payable. This ensures that the pension payments will not attract a direct tax charge and that the tax due is collected from the other income. Income tax allowances for 1983-84 are restricted by the amount of pension receivable in the current tax year and weekly or monthly tax free allowances are calculated accordingly.

Question No. 7 has been postponed.