Ms Mary Kennedy:

I will address Deputy Ó Snodaigh's comments as regards the voluntary or compulsory option. The report considered that issue in detail and gave the reasons it went for the compulsory option. The report states: "Allowing people a facility to opt in or opt out at their own discretion could lead to the selection of bad risks." The whole principle of social insurance is social solidarity where everybody pays in and if cover is needed, one gets it. The report also stated that it could also result in negation of the social solidarity contributory principles which underline the social insurance system. That is the point. Even way back, when consideration was being given to the idea of introducing social insurance for the self-employed, the report quotes from the Dáil debate at the time that every pension scheme is based on a mixture of good risks and bad risks. This is particularly the case with social insurance schemes under which cover is so broadly based. If we were to go with the opt-in or opt-out option, those most likely to want the payment would probably opt in while those who can cover their own costs would not opt in. In that case, how would the cover be provided? Social insurance is compulsory. Everybody pays into it and in the event of illness or unemployment, a person can make a claim. If we were to have an opt-in or opt-out option, it would undermine the whole social solidarity principle on which the whole social insurance system is based.