Aengus Ó Snodaigh (Dublin South Central, Sinn Fein) | Oireachtas source

I thank Ms Kennedy for the detailed report. I have not dealt with these reports as they have been made every five years in the past. Ms Kennedy said that significant Exchequer intervention would be required in the future unless certain things happened. One of them is obviously a reduction in expenditure and the other is an increase in PRSI contributions. Given the condition of the country at the moment an increase in PRSI funding is quite difficult because people are not working and businesses are struggling. One of the key ways to address some of the problems with the fund is to return to the near full employment of the Celtic tiger years. Am I correct in saying that even if that happened there would still be a shortfall in the future and there is a need for substantial changes to the contribution from businesses in the long term? The sustainability of the fund needs to be addressed with more extensive action, part of which Ms Kennedy has addressed here. For instance, last year the Government reduced some of the employers' PRSI contributions which seems to be contrary to a need to ensure the fund was getting at least as much as it is as present.

Do we need comprehensive tax reform in order to increase the Exchequer take from income tax and PRSI? What is the suggestion on employers? When compared with other European countries, Ireland's PRSI rate seems quite low. We have the standard rate of 10.7% and the lower rate of 4.25%, whereas in Austria it is 21%, Belgium's is more than 30% and it is also higher in Finland. Is Ms Kennedy suggesting that we need to go to that level? Unless the cost of living reduced substantially I do not believe anyone could suggest reducing the amount people get in return - the expenditure element - unless there is any other aspect to expenditure that could be addressed.