Oireachtas Joint and Select Committees

Thursday, 29 June 2017

Joint Oireachtas Committee on Social Protection

Overview of Pensions: Discussion (Resumed)

10:10 am

Photo of John BradyJohn Brady (Wicklow, Sinn Fein) | Oireachtas source

I will try not to repeat the points and questions already raised and I welcome all of the witnesses this morning. I find myself nodding in agreement with virtually everything that has been said by all three organisations and I commend them on this and on their ongoing work in their respective areas.

My colleague, Deputy Mitchell, will respond in detail to the points raised by the National Women's Council of Ireland. I also have my own questions to the NWCI, particularly around the use of the words "discriminatory" and "discrimination" towards women. I completely agree with the NWCI in this regard. The changes in 2012 were introduced in the full knowledge of the impact they would have on women. We can see that now in the facts and statistics that are coming back to us. The changes made in 2012 have had a direct impact on women and have widened the pensions gender gap. It is appalling that these changes were brought in without discussion or consultation. This has to be changed. As I said, Deputy Mitchell has some further questions and specific points to make on this.

I welcome Mr. Berney and again find myself in agreement with virtually everything he has said. We in Sinn Féin have articulated many of the same points over the last few years. Mr. Berney mentioned pension rates and the notion that these need to be linked to inflation. There are obviously different ways of calculating the rate of inflation. When we in Sinn Féin were putting together our pre-budget submission for 2016 we found, obviously working within the fiscal space, that increasing the pension age last year would only have meant an increase of €3.50. That would certainly not go down well with many people out there who are at their wits' end and struggling.

Mr. Kavanagh touched on the idea of somehow linking the pension to the average industrial wage. He mentioned that Active Retirement Ireland would ideally like to see it set at 40% of that wage. I would like to hear ICTU's perspective on this. Does Mr. Berney think that such a figure is obtainable? Does he consider it acceptable? It is currently at less than 33% of the average industrial wage.

We have seen the impact that the increase in the pension age has had since it was introduced. We now have more 65 year olds forced onto jobseeker's payments than any other age category. This is absolutely appalling. While Active Retirement Ireland made very specific points on this issue, how does ICTU perceive this issue? In pushing the pension age up to 67 and then 68 we are going above and beyond most of our European colleagues. I concur with the argument that this, along with all of the other cuts and changes made, needs to be suspended. This was imposed without any consultation. I also seek ICTU's opinion on the idea of a universal basic pension and on the notion of combining the contributory and non-contributory payments.

I also have some questions for Active Retirement Ireland. Some are general points that apply to each of the three organisations. Mr. Kavanagh touched on the issue of inflation-proofing. The target he mentioned of 40% would be ideal. Has Active Retirement Ireland looked at the British triple-lock system in any great detail ? Does Mr. Kavanagh think this is a model that could work here? Should it perhaps be put in place here? With regard to the pension age issue, there are, as I mentioned, more 65 year olds signing on for jobseeker's payments than any other age category. I thank Mr. Kavanagh for his comments on the legislation that my colleague, Deputy Mitchell, and I have brought forward on abolishing the mandatory retirement age.

I thank the delegates for their comments on the legislation that Sinn Féin, my colleague, Deputy Denise Mitchell and I have brought forward around abolishing the mandatory retirement age. It is hoped that it will get support, but we are waiting on a money message from Government to be able to advance it. It is about giving workers choice. I take the point that Mr. Liam Berney makes about manual workers. The legislation that we have proposed is about giving a choice to workers instead of their being forced onto a jobseeker's payment or a choice to women who have been impacted by the changes introduced in 2012. It is to give them the option to work on a little longer to make up the contributions to be able to get a higher pension. I have to make my apologies because I have to attend another meeting. However, my colleague, Deputy Denise Mitchell, will be here.

Comments

No comments

Log in or join to post a public comment.