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 ar ghnáth-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?

Just to bring a bit of reality to this conversation, the Deputy will know that the previous Minister for Finance appointed Dr. Donal de Buitléir to undertake an independent examination of the standard fund threshold, which was reduced in 2014. As a Government, our main focus in respect of pensions, particularly for middle-income workers, is to ensure that they have pension provisions and that we have a good State pension provision as well. Since this Government entered office, the weekly State pension has increased by €29. In our budget negotiations, we are focusing closely on ensuring that those on the State pension receive the increases they deserve. Our work on the non-contributory old age pension has also been significant.

I would contrast this to Sinn Féin's proposals in respect of average workers who are making provision in the private sector for their pensions or public sector workers who are paying into AVCs. The Deputy and his party have proposed year on year to reduce the pension tax relief to the standard rate, which would take the legs out from under the average nurse and average-----

We have not.

Sinn Féin has proposed to reduce it to 20%,-----

We have not.

Deputy, please.

-----which would reduce the pension tax relief that they receive.

Regarding the Government's decision, the Minister for Finance considered the independent de Buitléir report carefully, taking into account its recommendations. If the Deputy has seen the report, then he will know that we have not accepted all of its recommendations. The Government has agreed to implement a staggered approach to changes in the standard fund threshold, with some changes to be legislated for this year, but no changes will take effect until 2026. This is a phased change to the standard fund threshold, providing a phased increase from 2026 to 2029 of €200,000 per year. The Deputy will remember that the standard fund threshold used to be €5 million and was reduced.

The last time Fianna Fáil was in government.

Our focus has always been on, in the first instance, average workers and those who assist them in making provision for their pensions and, in the second, ensuring a continued increase in the State pension, which the Government has always prioritised. We will make it a priority in this budget as well. There has been an increase of €29 in the standard weekly State pension since this Government entered office. We need to see increases in pension provision for and pension take-up by workers. That is why measures such as auto-enrolment are important. I cannot assume Sinn Féin will support that measure; it is a Government proposal, so Sinn Féin will probably reject it.

The Deputy is trying to create an impression that the Government is looking after a small cohort of people and no one else. That is not the case. The Government is acting on an independent report in a structured and phased way. No changes will take place next year, but there will be a phased approach to increasing the standard fund threshold from 2026 onwards.

Our main focus is on ensuring pension provision for workers. This country has near-full employment because of the economic policies of this Government and the hard work of our people. We have 2.75 million people working in this country. Our country still faces challenges, so when they look across at the Opposition benches, they see how that economic prosperity would be put at risk if Deputy Doherty were the Minister for Finance. There is not a bandwagon that he will not jump on. He will bend in the wind on any issue. That is not the way to run a country or an economy.

We are steadfast on this.

The Minister is talking rubbish. I challenge him to produce an alternative budget to back up what he said about standardisation. It was a complete mistruth, and he knows it. He cannot defend this decision. I asked him a simple question about why we should ask Tesco workers, hairdressers and shop floor workers to help contribute to pension pots of €2.8 million for the wealthiest in Irish society. This measure will entitle the wealthiest to State-supported pensions of €100,000 and a tax cut of €320,000. That is what the Government announced yesterday. Why is the Government asking ordinary people to do it? Why does it believe the State should help people build up pensions to that level?

The Minister is correct, in that the pension pot used to be €5.4 million.

That was the last time Fianna Fáil was in government, right before it wrecked the economy and brought the IMF to our shores. It was madness then. It is madness now. We should not go back. Answer the question. Why should ordinary workers help to contribute to the pensions of the most elite in Irish society? Ordinary people do not have a whiff of pensions of €70,000, €80,000, €90,000 or €100,000. Why does the Government believe they should contribute to this? Why should this tax break of €320,000 go to people who already have pension pots above €2 million?

It is nothing of the sort, and the Deputy knows that. I do not know whether the issue of pensions is a matter he discussed when he went to London to meet potential investors in this country recently. This is about acting on an independent report that has come forward. In a very phased way from 2026, the standard funding threshold will be increased. While we are doing that, the Government has been reforming the pension arrangements in this country and is bringing forward auto-enrolment for workers, which is really important.

Crumbs. The tax break is €320,000.

It is not crumbs.

Please, Deputy.

About 50% of people in this country have made pension provisions themselves. That is it. About 50% do not have any pension provision. That is our absolute focus. That is why we need to keep things such as the ability to claim tax relief at the marginal rate, not like the Sinn Féin proposal that any average worker out there who is earning will pay more in tax.

Nonsense.

I will send Deputy Doherty the documentation from Sinn Féin that proposes to reduce the pension tax relief to the standard rate. That would be a real cost to workers and people.

The Minister cannot defend the policy; the indefensible.