Joan Burton (Dublin West, Labour) | Oireachtas source

It is because, as a Department, we absorb it into the Estimates. We do not make an issue of it; we just do it, and absorb it into the Estimates. That was done in previous Administrations. It is the correct thing to do. An alternative system of government accounting in other jurisdictions, which I am not advocating, could involve cash limits on the total spend in a particular area. If there are more people that cake is still there but as there are more people eating the cake, one must cut. Instead, we do what I consider to be the correct thing - that is, to absorb it into the Estimates. However, many people and commentators do not notice it. In general conversations about pensioners they know that at present there are 5.3 people working for every one of our retired people and that by 2050 that will have decreased to only two people at work for every retired person. That is one of the reasons I encourage people to build up pension savings additional to their retirement pensions - because it provides them with a stronger income in retirement and, as a consequence, a more comfortable lifestyle.