Government raid on pension funds disastrous – Ó Domhnaill

Jobs budget penalises pensioners and savers

 

The government’s €1.8 billion raid on pension funds discriminates against ordinary workers and will be disastrous for the economy, according to local Senator Brian Ó Domhnaill.

Senator Ó Domhnaill said, “This is a smash and grab on pension funds at a time when 99% of funds are already under-performing. It penalises thousands of public and private sector workers in Donegal who have worked hard to save for their retirements.

“How can the government justify punishing pensioners and savers to fund a jobs initiative which is already the source of much criticism from across the board. There is no doubt that this highly unwise move will have a detrimental impact on the performance of our pension funds and an knock on effect for the economy. It will discourage people from investing in Irish pension funds and could lead to more money being diverted out of the country.

“A lot of self employed business people in Donegal have been hit by the economic downturn, and are now dependent on their pension funds as a source of income.  However under the government’s plans these pension funds will be reduced, and that is sure to reduce the payments being made to these people.

“We should be promoting our pension funds as a source of investment and encouraging workers to save for their retirement. Instead, the Fine Gael/Labour government has chosen to put our pensions under greater strain.  This is not the type of action they were elected for and I am certain that the people will not stand for it.”

Posted: May 11, 2011     |     Categories: Uncategorized