Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

I move amendment No. 13:

In page 12, between lines 3 and 4, to insert the following:“(1AC) The €12,000 monetary threshold shall be reviewed on an annual basis by the Minister to take into account the annual increase in inflation.”.

This is a very simple amendment which I assume we can deal with very quickly. The Minister mentioned that she had detailed consultations on how to find a balance and a floor. I appreciate that. I will take amendment No. 13 as an example, but what I say about it applies to the other amendments. The floor is €12,000. What the Minister has given people is €12,000 worth of purchasing power today. However, that might not be €12,000 worth of purchasing power next year if there is 1% or 2% inflation. It certainly will not be the case that €12,000 will have the same purchasing power in five years time. If we are protecting people to the extent of what they can purchase for €12,000 this year, that should be indexed in line with inflation in order that they are protected for the same amount each year. For example, someone in his or her 40s who is paying into a defined benefit pension scheme will not take much solace from the fact that he or she will be protected to the extent of €12,000 a year when he or she is 65. The sum of €12,000 today might be worth an awful lot less in 20 years time when people reach the age of 65, and the amounts should be indexed to protect their value.