Dermot Fitzpatrick (Dublin Central, Fianna Fail)

I welcome the provisions of the Social Welfare Law Reform and Pensions Bill 2006.

I especially welcome the Bill's social welfare measures: the introduction of a standard and enhanced non-contributory pension scheme to lift some 34,000 pensioners on to higher or full pensions, the increased supports and entitlements for lone parents, carers and widows, the increased emphasis on employment activation measures to ensure that no individual's potential is overlooked and to increase people's belief in their own abilities, and the establishment of the legal structure for the payment of the early child care supplement, beginning later this year, to some 260,000 families in respect of 350,000 children under the age of six.

On pensions, I certainly welcome the new measures to strengthen protection for members' pension schemes. Those measures include: provision for the Pensions Board to impose a fine as an alternative to the prosecution of an offence; allowing the Pensions Ombudsman to bypass the internal dispute resolution procedure in cases in which there is clearly nothing to be gained from this process; and powers to make regulations requiring a scheme actuary to have his or her work reviewed to ensure that it complies with the provisions of the Pensions Act 1990.

A big problem facing this country is the need for pensions facilities for the steadily increasing number of people due to come into the pension net. Currently, I am told by the building trades unions that thousands of their members are denied their rights to a pension because of the complete failure of employers to make the required payments to the building trade pension fund. The issue is too important to be allowed to meander through the courts over many years at great expense with possibly no benefits to the aggrieved parties at the end of the day. Even the most carefully regulated building sites are still inherently dangerous and, although health and safety regulations are being improved and tightened up, many workers' entitlement to a pension has been denied.

I am glad that investment in welfare supports and entitlements will now account for €1 in every €3 spent by the Government, but I am also glad the Minister understands that lack of finance is not the only cause of poverty and that further enlightened social policies are needed in several key areas. I welcome the important new measures in the Bill that are designed to target resources at older people aged 66 or over, in addition to the significant weekly increases announced in budget 2006. These measures include combining all non-contributory payments for people over 66 into one standard and enhanced non-contributory pension scheme with a greatly improved means test that will lift some 34,000 pensioners on to higher or full pensions. The means disregard for this standard pension will be increased from €7.60 to €20 per week. A special earnings disregard of €100 will be introduced to allow pensioners to earn more income without eroding the value of their pension.

The weekly disregard of €20 ensures a single person with no other means will be able to have up to €35,000 in capital and still qualify for a pension at the maximum rate. This rises to €70,000 in the case of couples with no other means. The Bill also makes provision for the extension of an enhanced earnings arrangement in the new State non-contributory pension scheme to persons under 66 who receive a widow's or widower's pension, deserted wives' allowance or prisoners wives' allowance. This will introduce a special earnings disregard of €100 per week.

I am delighted there is a change in terminology in the Bill. The old age pension will now be called the State pension. Today, the vast majority of people who reach the age of 66 do not consider themselves to be old and are, in fact, in the prime of life. I had the honour of attending the launch this week of a survey into the needs of elderly people in Stonybatter in my constituency. While money was one of the complaints mentioned, it did not appear to be a major problem facing the elderly in this area. Many of the problems mentioned related to health, lack of mobility, aids to assist mobility, fears for personal security, social interaction and loneliness. I am sure that if this study was replicated in other constituencies, much the same concerns would arise.

This study was not conducted by social scientists studying for a PhD or a Master's degree but by ten senior citizens who live in the community, spoke its language and, more importantly, were prepared to listen to their neighbours. This is what the Minister meant when he stated we must go behind the payments and tackle the causes of poverty. He might regard this study as a pilot scheme and replicate it in different areas around the country, particularly in areas where need is greatest, using local people to inquire about, empower and motivate their neighbours. I welcome this Bill and wish the Minister success in implementing it.

See this speech in context