Government warned of few options with pension levy

The government is being warned that it does not have much choice in not scrapping the pension levy.

Corporate pension provider IFG says the government will not be able to afford to scrap the levy in light of the settlement of pensions for Waterford Crystal workers.

The Finance Minister Michael Noonan stated in the Dail last week that the charge would be dropped after 2014.

But Samantha McConnell of IFG says the cost of the pensions for Waterford Crystal is an estimated 300 million euro which leaves the government with little option.

"They only have 2 choices here - they either collect through tax revenue, which is not a palatable option, or put the levy back on the industry" she said.

"In fairness, that's what they have done in pervious examples" she added.