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

I note my amendment was ruled out of order on the basis it would constitute a charge on the Exchequer. Members are debating the rate of increase for pensioners. Section 3 deals with contributory pensioners and section 4 deals with non-contributory pensioners. The Minister of State will be aware that pensioners have not had an increase since 2010 and the rate of inflation in the interim period has been 4.5% which, apart from anything else, erodes their purchasing power straight away by 4.5%. However, I suggest this probably is exaggerated on the lower side because inflation covers everything from the cost of aeroplanes to the cost of drink, the cost of luxury goods, essential goods, etc. The increase in the prices of essential items, which are more regularly purchased by pensioners, particularly those who are completely reliant on their pension, probably has been approximately 6% or 7% since 2010. In itself, that is bad enough and constitutes a considerable erosion of purchasing power but in the meantime, pensioners in this category have lost the free telephone rental allowance and the household benefits package has been decimated. They have lost and subsequently regained half the fuel allowance but carbon taxes have increased. In addition, tax relief on medical insurance has been severely restricted and this measure particularly affects people in this category. The drugs threshold has been increased and the limits in respect of the over-70s medical card have been reduced, that is, the payments of the amounts under which one will not qualify for a medical card. Moreover, the housing adaptation grants, which again are of particular relevance to this group, have been reduced quite substantially. Mobility grants have been reduced and the bereavement grant has been abolished. On top of all of this, people - not exclusively but including those in this category - must bear the weight of water charges, property tax and increased contributions towards the fair deal scheme. In addition, home help hours have been slashed.

Consequently, these people have suffered quite an imposition apart from the erosion of their incomes through inflation. It is my contention that €3 per week is insufficient compensation for the private nations they have suffered and while I welcome the increase, it is not nearly sufficient to compensate them for what they have lost. Incidentally, I re-read the Tánaiste's Second Stage speech and she mentioned it was a €3 per week "above inflation increase" but this should be corrected. It is not an above inflation increase, which would suggest pensions have been increased to provide for inflation in recent years, an inflation rate of a certain amount now is being projected and the €3 is on top of that. This is not correct.