TÁNAISTE EAMON Gilmore defended the pension levy and reiterated that it was a temporary measure.

It was funding the jobs initiative which was already working in reducing unemployment, he said.

“That is the priority for the Government and the way to economic recovery,” Mr Gilmore added.

The Tánaiste was replying to Fianna Fail deputy leader Éamon Ó Cuív who claimed the levy was causing severe hardship for pensioners. Pensions were already under pressure because of the global downturn, said Mr O Cuív.

He called on the Government to introduce legislation to refund pensioners the money taken from them “under false pretences”.

Mr Gilmore said the 0.6 per cent levy was considerably less than the amount many companies where charging in administration costs. “The companies in question are perfectly capable of absorbing the levy,” he added.

He said the Live Register figures, published on Wednesday, showed the biggest drop in unemployment in four years. Sinn Féin’s Martin Ferris said emigration was the reason for that.

Mr Gilmore said the Government was continuing with its strategy to focus on job creation through the strategic investment programme and initiatives such as the global Irish economic forum taking place at the weekend.