Ivor Callely (Dublin North Central, Fianna Fail)

I am pleased to support the Bill. I congratulate my friend and colleague, the Minister, Deputy Brennan, for making such significant and innovative changes in social welfare in a short timeframe. I thank him for the package he brought forward in December for budget 2006, involving expenditure of more than €1 billion. This is additional to what is already being spent and brings the total expenditure on social welfare this year to €13.5 billion.

This is a huge amount of money and represents a 100% increase in expenditure on welfare supports and entitlements since 2000. This expenditure constitutes a major investment of taxpayers' money. We should be confident that spending on this scale will have a positive impact on the recipients. I welcome the common theme of reform that runs through the Bill. I am aware the Minister is anxious to see the reforms implemented for the greater benefits of those who will receive them.

The Bill includes a full spectrum of measures to address child care costs, including increased child benefit and other measures. This is a major issue that warrants special address. As the parent of three young children, who seem to grow inches taller every time I blink, I appreciate and understand the escalating costs of caring for children. I also welcome the changes in regard to the carer's benefit. In addition, I congratulate the Minister on the new scheme titles, which are most appropriate for our modern society.

I particularly welcome the improvements to the old age contributory pension, retirement pension, invalidity pension and pre-retirement allowance. The new provisions in regard to the State pension, involving the disregard of weekly earnings of €100 in respect of the means test for eligibility, are positive. There are also improvements to the one-parent family payment, early child care supplement, respite care grant, family income supplement, invalidity pension and occupational pensions. The Bill also provides that specific bodies are included as bodies authorised to use PPS numbers as a public service identifier.

The issue that struck me, apart from all the benefits I mentioned, is the concept of reform. I welcome the Minister's indication that these reforms are about liberating, empowering and encouraging people, and striking a balance between rights and responsibilities. As he observed, it is, above all else, about striving to ensure the potential that no individual is overlooked and that nobody's contribution is written off. This legislation is concerned with bringing about the reform that will help us to meet the challenges of modern society.

Of relevance to this debate are the measures announced by the Minister for Finance in the recently published Finance Bill to provide incentives for the transfer of money from SSIA funds into pensions. We all recognise there is a challenge in regard to pensions provision. Nobody wants to see pensioner poverty. We must ensure the foundations are laid so all citizens are secure in the knowledge they will have a decent pension and will be able to live with dignity in later years. This is an area in which I have a particular interest because I served as Minister of State at the Department of Health and Children with responsibility for services for older people. I am aware of the challenge of the amount of work to be done in this area. Equally, we recognise the tremendous amount of good work and input that continues to be made by older people to society, and that should be encouraged.

I congratulate the Government on its decision to pay a bonus of €1 for every €3 transferred directly to a pension account arising from the SSIA benefits. It creates an ideal opportunity for thousands of people to improve their pension positions as it allows for a maximum once off contribution of up to €10,000. I hope the Minister, Deputy Brennan, will undertake a good publicity campaign to promote this scheme. Perhaps the Minister could ensure an appendix to avail of this bonus is attached to the SSIA4 form to draw down the SSIA moneys. Any person who draws down SSIA moneys should be encouraged to see the benefits available arising from this move by the Minister for Finance and the Minister for Social and Family Affairs.

My area of interest is provision for the welfare of older people. The Department of Social and Family Affairs recognises the large number of older people in our community. There is potential to ensure greater participation by older people in our society. I would be happy to discuss privately with the Minister some of the issues I have in mind. I congratulate him on his endeavours to ensure older people, particularly those who are vulnerable, will have decent pensions and security in their latter years. That view is held strongly by the Minister. I congratulate him on his endeavours to secure this arrangement and we all sign up to ensuring such security.

Equally, I congratulate the Minister on the provision of a €100 earnings disregard per week in respect of recipients of pension benefit. Every individual is different and some people look forward to retirement or early retirement. Some people have opted, for one reason or another, to take early retirement but following a number of years with their foot on the back pedal find they would like to return to the workplace but find they are in a catch-22 in that should they do so they would lose certain benefits. This €100 earnings disregard is a great benefit in that it will encourage older people to contribute in some form in the workplace, perhaps simply for the sake of having an occupation. I have met people in my constituency and elsewhere who had a pressurised and demanding job and were happy to back out of it but subsequently find they miss having an occupation and getting up in the morning to face some type of challenge. They would welcome the challenge presented by having an occupation, whether it be doing the books, stacking shelves in their local supermarket or whatever. This provision gives people an opportunity should they so desire to participate in the workplace.

I also welcome the means disregard for the standard pensions which is being increased from €7.60 to €20 per week. In essence, it will mean a person will be able to have means of €35,000 in capital and qualify for a maximum pension, and a married couple will be able to have double that in means. This provision is helpful. There are other ways this benefit will have an impact on people. For example, some people, for a host of personal reasons, may wish to downsize their property, distribute some proceeds of that to their children and retain some of the proceeds, and they will be able to retain such means without it impacting on their qualification for the maximum rate of pension.

Since I was elected to this House and, particularly during my time as Minister of State at the Department of Health and Children, it has been a priority of the Government to recognise the contribution of older people to our economy, society and their communities. One of the substantial means of recognising this contribution is through increases in the pension schemes that are applicable to this group of people. This Bill will introduce further significant reforms in pensions and potentially increase the incomes of thousands of additional pensioners. The Government has ensured the welfare of older people has remained a principal concern. Under this Government, pensions have increased by 80% during the past number of years, well ahead of the consumer price index, a record of which we are rightly proud.

In my constituency of Dublin North-Central there are several active retired individuals and retirement groups. These people are an inspiration as they volunteer, put on shows and exhibitions, engage in fitness activities and events and contribute positively to their community. They are a living example that retirement is not necessarily a time to opt out and sit back. Their energy and enthusiasm is a credit to them. Older people in similar groups elsewhere throughout the country participate in their communities. They know their contribution is vital. The Government, in this Bill, is increasing options and opportunities for older people and allowing them to contribute to the economy without fear of losing their well earned and well deserved non-contributory pension.

I am delighted the Government will allow and encourage those reaching pension age to continue to work should they wish to do so. In the past financial concerns about pensions may have discouraged people from continuing to work or re-entering the workplace. This Bill, by providing a special earnings disregard of €100 per week, will allow people the choice of working and not losing out on their pensions.

Those who cannot continue to work, or wish to use their time in retirement differently, will also benefit under this Bill. A greatly increased means test will ensure that more than 34,000 pensioners will see their incomes raised. Welfare benefits will be combined to make claiming entitlements clearer and more comprehensible.

This Bill will see the establishment of the non-contributory State pension scheme from next September. A standard non-contributory pension scheme based on a means test will be available to all welfare recipients over the age of 66. To ensure additional older people qualify for this new scheme, this Bill will see the means disregard increase from €7.60 to €20. This new scheme, in bringing together all the other support schemes currently in place, will not only increase benefit payments for a significant number of people but will make the entitlement to benefits easier to understand.

I am pleased with the news that pensions will be paid on the date that people turn 65 for the retirement pension and 66 for the old age pension, rather than on the pension pay days. I am sure that those entitled will welcome this extra bonus on their birthday.

The Bill also deals with occupational pensions and rightly addresses concerns workers may have about their pensions. The Government, in recognising those concerns, asked the Pensions Board to undertake a statutory review of those 2 million people in our workforce who are without personal pensions. As the report was published recently, I hope people inside and outside the House will review and debate its findings.

Meanwhile, this Bill introduces several measures to protect those who have paid into pension schemes. The Minister for Finance introduced measures to incentivise the transfer of the SSIA funds into pensions and encourage contributions to occupational pensions. This is another innovation by which the Government will assist occupational pension holders.

The benefits outlined in this Bill are being renamed to better reflect the nature of the benefit in today's society. The old age contributory pension will be the State pension, indicating that the age of 66 is no longer considered old. The Government has no wish to hinder people by suggesting that their age is a barrier to their activities and ambitions. The retirement pension has also been changed to the State pension, indicating that retirement is no barrier to continuing to work.

It is vital that older people who have contributed so much to our economy, society and communities are not hindered by financial worries and complicated means of claiming their benefits. The innovative and far-sighted changes in this Bill will be of great benefit to older people, not only in my constituency of Dublin North-Central but throughout the country. I am happy to support this Bill and commend it to the House.

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