Kieran O'Donnell (Limerick City, Fine Gael)
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I wish to comment on the 30% figure in respect of the drawdown relating to AVCs over a three year period. In the context of people having adequate pension provision, I understand AVCs only apply to occupational pension schemes and that they do not apply to the self-employed or directors who are involved in company pension schemes. The State's only exposure is in terms of the qualifying adult, namely, anyone who qualifies for a contributory old age pension, regardless of his or her means. The only exposure would be in respect of a qualifying adult when he or she makes a claim on reaching retirement age. Will the Minister consider opting for a figure much lower than 30% for the self-employed and directors? He is probably well aware that access to credit and cash is very much an issue for the self-employed. Perhaps it might be possible to use a more restrictive mechanism to access AVCs by opting for a much smaller percentage.

Will the Minister comment on this issue, particularly as it continues to arise? I welcome the measure introduced because it is very progressive. What I am suggesting would link with what is being proposed in the context of ensuring people make proper pension provision. Where people are making proper contributions, as one would expect, and where they qualify for the maximum old age pension, the only exposure is in respect of the qualifying adult. That is, of course, assuming the person does not have children. It would seldom be the case that at 65 or 66 years of age, those to whom I refer would have qualifying children.