Oireachtas Joint and Select Committees

Tuesday, 10 November 2015

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform

Financial Emergency Measures in the Public Interest Bill 2015: Committee Stage

5:30 pm

Photo of Séamus HealySéamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Deputy Donnelly had an amendment down on this section at my request but, of course, it has been ruled out of order. Basically, I want to make the point that pensions are effectively private property. That has been decided by the courts. It is effectively withheld pay over the lifetime of the pensioner.

I believe the question of not restoring the pension in full from 1 January is unconstitutional. The Minister has told us previously that pensions can only be interfered with in a national emergency. Various Ministers, including the Tánaiste, have told us there is no emergency any more. The Minister for Finance, Deputy Noonan, tells us that the debt to GDP ratio is going to be less than the European average next year. As I said earlier, the last budget gave €100 million to the top 5% in the country, the highest earners. It gave €10 million to the 10,000 people who have €595,000 per annum or more in income.

The provisions amount to the State withholding €95 million of the €125 million. That amount is effectively being confiscated by the State. That is a constitutional question. I believe the various amendments put down should have been allowed to ensure an opportunity to bring this legislation into line with the Constitution.

Various points have been made by Deputy Fleming. They are perfectly correct in respect of the non-involvement of pensioners in the process. There is another key point. Pensioners are of a particular age. Many of them are effectively at a stage in life where they will pass on and will be at a loss in respect of their pensions, which are then withheld forevermore. This affects their families as well. I believe these pension provisions should be withdrawn by the Minister and full restoration should be effected.