Dr. Tom McDonnell:

On the issue of pensioners, that was part of an overall series of recommendations around horizontal equity. I suppose the point is that if everyone regardless of age is treated the same for income tax, USC and PRSI purposes, and then we have a system in place that is adequately benchmarked and is indexed in support, we can protect all households. I know the commission focuses on working age payments, but the Commission on Pensions focused on pensioners. Certainly, NERI would very much be of the view that those recommendations should be extended to older people as well. To support Mr. Nugent's point, I agree that looking at median earnings has to be part of the approach, because on a year-on-year basis inflation tends to be lower than wages, and there is a risk we could fall behind unless we are benchmarking every year. However, the median essential standard of living and focusing on deprivation has to be core to that process as well. It might be that there is a range of indicators that one looks at.