MINISTER FOR Finance Brian Lenihan has indicated that he is prepared to consider changes in the pension levy, so long as the targeted saving was achieved.

“I would not rule out consideration of other banding options that may be introduced once the savings are equivalent. But the savings must be equivalent. That is fundamental to the operation of the levy.”

The Minister was speaking during Dáil finance questions and in advance of the debate last night on the Labour Party motion calling for the pension levy to be withdrawn. The Government defeated the motion by 77 to 67 votes and will introduce the pension levy legislation in the Dáil today.

During the debate, Labour finance spokeswoman Joan Burton called on the Government to withdraw the Bill and redraw it “based on the principle of fairness and a fair deal for public servants”. She thanked all Government speakers on the debate who at least “had something to say – unlike the missing 100 or so who have gone off to the legion of the rearguard and have gone off hiding in the bar until the vote is called”.

Ms Burton described the Government approach to economic policy as being “like children blowing bubbles. They blew the bubbles bigger and bigger until they finally burst.” She accused Fianna Fáil of attempting to drive a wedge between the public and private sectors. “We reject your vision of a divided Ireland where public and private sector workers will fight each other,” she said.

Minister of State for Children Barry Andrews however accused Labour of dividing public and private sectors. The Labour Party blamed everyone else but it was Labour “which was creating the mood music”. He said that at the very first hint of criticism the Labour Party panicked and produced a document last Saturday that was “back of the envelope stuff” and they were “too windy” to take part in the solution. “If the Labour Party ever gets into Government it will have to resile from every single one of its rhetoric and blandishment of public service unions.” Minister of State Martin Mansergh said: “De Valera at the time of the Great Depression famously said that no man was worth more than £1,000. If that were to be generously updated no one paid for or supported by the State would be worth more than €500,000 a year.”