John Curran (Dublin Mid West, Fianna Fail) | Oireachtas source

I would like to put a few points to Mr. Moran and Mr. Scully. I thank them for their attendance at this meeting and for their submissions. Mr. Moran said in his opening statement that "in the October budget, Age Action is asking the committee to support two specific proposals". I assure him that as this committee addresses the pensions issue, it intends to draw up a report with proposals and recommendations before the summer recess in the hope of influencing the budgetary process. The appearance of the witnesses before this committee today, and the presentation they have given us, are timely from that point of view. Even though we are in the month of May , we are working towards the budgetary process.

While Mr. Moran quite rightly referred to the 2012 cut in State pensions, I suggest it would be more correct to refer to the change in the averaging bands. The imposition of additional bands moved people into different categories. The witnesses are proposing that we should go back to the older system. I want to confirm that this is exactly what they have in mind.

Mr. Moran referred to "the €290 million estimated by the Department as the cost of backdating the home maker's scheme". He might explain in a little more detail the composition of that €290 million. Would it be a recurring annual cost from here on? Is that the way it is?

Deputy O'Dea spoke about the need to future-proof pensions. One of the proposals relates to average salaries. Under the British system, pensions are linked to an index like the consumer price index. Would it be more appropriate to create a specific index for people who are older, given that their needs are different? They might not have educational needs but they might have higher health care needs. Should an index be established that would reflect the actual living costs of older people? Specifically, such a system could ensure the rate of increase is relevant to the needs of older people rather than to a more general need. The witnesses might give me their views on that.

Under the current system of payment for pensions, one must have a minimum total figure initially and then a calculation is made on the basis of an average annual contribution. Most of those who have taken time out of work are women. In some cases, they qualify for a reduced pension, rather than the full payment, because of the reduction in their average earnings over their working lives. It is possible that the total amount paid by someone in these circumstances could be greater than the total amount paid by someone else who is getting a higher payment. What is the view of the witnesses on the whole idea of shifting from an annual average to a total payment contribution system? Do they think that would be more equitable? I am not suggesting that there would be no issues with such a system. Would such a system be more equitable than the current system? Obviously, it would have to be worked out exactly in terms of bands, etc. I would like to hear the views of the witnesses on whether it would be a more equitable system. I do not expect that this could be done in a single budget, but is it something we should be actively looking at?

We have come through an economic recession. While the recession may be over, there are continuing legacy issues, for example in the whole area of housing. We have a cohort of ageing people who are in private rented accommodation. Traditionally, people in this country have finished paying for their houses by the time they retire. At present, there are many people in this country who have lost their homes. Do the witnesses have a view on the adequacy of the current pension arrangements for older people who do not own their own properties as they reach retirement? Is it possible that in 20 years' time, we will be looking at a scenario that is different from the scenario we are looking at today?

That might be a more longer-term issue but we do need to be cognisant of the fact that there is a cohort of people who traditionally would have owned a property - their home - that are now living in private rented accommodation. As we know, the number of people living in private rented accommodation is higher now than ever before. I would welcome the witnesses' views on that particular cohort.