Conor Lenihan (Dublin South West, Fianna Fail)

On foot of the way in which our pensions system is organised, surveys such as those presented by the OECD in, for instance, its publication Pensions at a Glance can provide a distorted picture of the economic position of older people in Ireland. The survey focuses on the cash income provided through state pension systems and, in our case, makes no allowance for the role played by private occupational pensions or for the additional supports — such as electricity and gas allowances — provided to pensioners through the household benefits scheme or through the provision of medical cards, etc. Furthermore the very high level of home ownership among older people here is not reflected in such surveys and also impacts on the resources available to people in retirement. Accordingly, while such surveys are useful to compare aspects of the pensions systems across other countries, they are not, for the reasons outlined, a true indication of the economic position of our older people.

In respect of income poverty specifically, the most recent EU Survey on Income and Living Conditions for 2005, published this week by the Central Statistics Office, found that the percentage of older people below the 60% median income threshold has decreased from 27% to 20% in just one year. The latter compares to a rate of 18.5% for the population as a whole. This does not include the impact of the major pension increases provided for in 2006.

The needs of older people will remain a priority for the Government and this has been demonstrated by the numerous initiatives which have been taken in the past ten years in the area of pensions, supports for carers and household benefits. For example, since 1996 pensions have increased by almost 104%, or nearly 50% in real terms, faster than both price and wages growth in the same period. The Government is committed to achieving a target rate of €200 per week for social welfare pensions by 2007. In this regard, the budget to be presented next month by the Minister for Finance, Deputy Cowen, will be a landmark event.

Within the existing structure of social welfare pensions, which are based on contributory and means-tested payments, measures have been taken to provide personal pension payments to those who may have less than complete insurance records as a result of leaving the paid workforce to care for children or incapacitated people. These include the introduction of the homemakers scheme — which covers periods of caring from 1994 and under which up to 20 years spent on home duties can be disregarded in calculating pension entitlement — and an easing of qualifying conditions for both contributory and non-contributory pensions.

There are women who, for various reasons and despite the changes that have been introduced, remain outside the social welfare pensions system. Their position, as well as that of others who are not covered by social welfare pensions, will be considered in the context of the Green Paper on pensions to which the Government is committed as part of the new social partnership agreement, Towards 2016. The Green Paper will outline the major policy choices, the challenges in this area — including outstanding issues on social welfare pensions — and the views of the social partners. The Government is committed to responding to the consultations on foot of the Green Paper's publication and to developing a framework for comprehensively addressing the pensions agenda over the longer term. It is expected that the Green Paper will be published at the end of March next year.

The Department of Social and Family Affairs has responsibility for the provision of income support for carers and co-operates with other Departments on this issue, as appropriate. Issues relating to nursing home subvention rates are primarily a matter for the Department of Health and Children and the Health Service Executive. Under the current assignment of responsibilities among Ministers of State, Deputy Seán Power, Minister of State at the Department of Health and Children, has special responsibility for older people.

A working group chaired by the Department of the Taoiseach and comprising senior officials from the Departments of Finance, Health and Children and Social and Family Affairs was established following the publication of the Mercer report, Study to Examine the Future Financing of Long-Term Care in Ireland. The objective of this group was to identify the policy options for a financially sustainable system of long-term care, taking account of the Mercer report, the consultation that was undertaken following that report and the review of the nursing home subvention scheme. The report of the group is currently being considered and I expect a decision to be taken in respect of this matter in the future.

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