Eamon Ryan (Dublin South, Green Party)

The Green Party is happy to welcome this resolution. It is interesting that each of the speakers from both sides have said, in a sense, that there is a common acceptance of the inequity in our pension system. That we are still and will increasingly spend more in tax foregone than in the provision of State non-contribution pensions is remarkable in terms of income distribution. That 80% of the tax foregone is to the top 20% of taxpayers shows what a massive transfer of wealth we are organising in our pension system. While I welcome this measure I regret it does not go further.

Speaking on a personal basis, my experience to date with pension schemes is having to pay one. It is a remarkable infringement by the State that the only investment I can make for a pension that will qualify for such generous tax breaks, because of my current income here and the higher tax bracket, is in some kind of a unit fund system over which I have no control and I do not have any choice.

The Tánaiste has spoken in the past about the need for choice and freedom in business decisions. I do not have a choice in regard to my pension contributions. I would like to see a system introduced which allowed greater choice and freedom rather than what has been described by some commentators, such as David McWilliams, as a scam by the financial industry because of the tax breaks being provided. I find that restricts me and my ability to invest for the long-term future as I see fit.

It is interesting that a number of speakers have raised the issue of the SSIA scheme. Whatever about us not commenting on the current scheme I regret we are not looking at a redevelopment, extension or a new version of the scheme which might provide a long-term pension option. It could be on the basis of a ten-year payment on a fixed interest rate or a further 20 year payment on a lower rate of interest which would provide a secure option which the State would back up. This would allow people invest in something other than the current unit trust or other private funds that are available. Such a development would be welcomed and is one the Green Party has proposed.

While we welcome this initiative it is a sign we are not going far enough and that the basic inequity in our pension scheme remains. That needs to change.

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