Sir, – We are now informed that the National Treasury Management Agency is ready to raise funds of up to €2 billion this year by issuing “sovereign annuity” bonds to domestic pension funds.
Our Government is already foregoing tax at the rate of €4.1 billion per annum to the pensions industry, based on 2007 figures. In effect giving our money to the pensions industry free gratis.
The “sovereign annuity” bonds will allow the pensions industry to charge interest on lending this money back to our Government. After raiding the pension fund assets with the imposition of a levy, how can our Government justify paying €120 million this year to borrow €2 billion of its own money? – Yours, etc,