John Brady (Wicklow, Sinn Fein) | Oireachtas source

Okay. I refer to PRSI contributions, the changes that have been made and the extension of some of the contributions and what people can receive for them. The Minister said when he appeared before the committee that he had engaged and started discussions with opticians, dentists, etc. I am not sure whether the witnesses are aware of the progress of those discussions or whether any progress has been made in extending the scheme and the coverage for people. Could the witnesses give an update on this?

It was stated that a survey was conducted among self-employed people to discover what benefits they might like to see for the PRSI they pay. At what stage is this at? Has there been much of an uptake in the consultation process? Could the witnesses give an indication of the type of feedback that has been received?

Regarding the State pension increase of €5 a week, I understand some of the points the witnesses have made about lifting people out of constant poverty and so on. Has the Department ever considered or costed a measure to inflation-proof pension contributions? I would like to see this happen. My party has advocated and costed it and provided for it in our alternative budgets. It should be done. Has the Department given it any consideration as opposed to the current position whereby some years pensioners might get an increase whereas other years they might not? The index-linking of pension contributions would be a very useful measure.

I have just touched on poverty rates. Mr. Duggan said consistent poverty has been halved to 2.1%, but this is not true for all pensioners. I mentioned 65-year-olds who are forced to retire. We are aware of the measures that have been introduced in this regard and the changes made to the eligibility of retirees to obtain their State pensions. They are not able to do so until they reach 66, before which they are placed onto a jobseeker's payment, which is €45 less than the full State pension. Therefore, while the witnesses talk about the reduction in poverty rates, 65-year-olds forced onto jobseeker's benefit are below the poverty level in many cases, so I question the facts and figures as the witnesses have presented them. They are not consistent across the board. One of the measures brought in to tackle this was the transitional State pension, the abolition of which in 2014 has had a huge impact on many people across the board. More than 5,000 65-year-olds are now forced onto a jobseeker's payment, higher than any other age category in the State. Do the witnesses acknowledge the impact the abolition of the transitional State pension has had, the difficulties it has put people under and the fact that they must retire at 65? In many cases these people have worked 40, in some cases 50, years, paying their PRSI and paying into the State pension, yet they are not able to obtain it once they reach retirement age. Do the witnesses acknowledge that this has caused huge difficulties for people reaching at that age?

The rate bands have caused huge difficulties across the board, particularly regarding gender. When the pension reforms were introduced in 2012, the gender gap was estimated at 37%. It was a huge gap. These reforms have compounded the problems and forced more and more people, particularly women, into poverty in their retirement age. An internal survey of 5,700 claimants conducted in advance of the cuts introduced in 2012 demonstrated that annual cuts in the band categories in which women are in the majority would exceed €1,100, whereas the cuts in the predominantly male band categories would be lesser. In 2014, the Irish Examinercarried out an investigation involving various Department memos and briefing notes. One of the most glaring findings of the investigation showed that in three of the categories in which women accounted for over 60%, the cuts imposed ranged from €1,196 to €1,497. In two other categories in which women only accounted for between 16% and 36%, the cuts ranged from €977 down to zero. It is therefore clear to see the changes in the bands have impacted women more, and we know the reason for this: they have been out of the workforce looking after and rearing their children or loved ones. This has had a huge impact. Prior to these changes, in 2012, the gender gap was estimated at 37%. Has an analysis been carried out to discover the current extent of the gender gap? I imagine-----