Séamus Brennan (Dublin South, Fianna Fail)

I propose to take Questions Nos. 9, 40 and 164 together.

Since taking office the Government has made the needs of older people a priority with the inclusion of several commitments in the Programme for Government aimed specifically at this group. I am pleased to say that we have delivered on the most recent of these commitments, which was to increase the non-contributory State pension to €200 per week by 2007.

The contributory State pension has passed this mark and now stands at €209.30 per week. Pension increases have been well ahead of inflation, thus ensuring that they are significantly improved in real terms. Since 1996, and including the recent budget increases, pensions have increased by almost 119% or about 57% in real terms. The Government has not committed itself at this stage to any particular rate of pension for the future. Rather, I am determined that we will build on the success achieved in this area and, as part of the social partnership agreement Towards 2016, it was agreed to work with the social partners over a ten-year period to enhance pension provision and income supports generally. This will include further enhancements of social welfare pensions over the period and a commitment to build on the now achieved 2007 target of €200 per week.

According to the most recent data from the Central Statistics Office, gross average industrial earnings were €601 per week in September 2006. On that basis, a pension based on 40% of gross average industrial earnings would be approximately €240 per week, and a 50% pension would be approximately €300 per week.

The estimated additional costs in a full year of bringing all maximum rates for those over 66 up to these levels, while maintaining the current relationship of increases for qualified adults to the personal rates, are approximately €720 million and €2 billion respectively. These estimates are based on the current number of older people in receipt of a pension. They include the cost of increasing payments to qualified adults to maintain their current proportional relationship to the personal weekly rates of payment, but do not include any additional people that would qualify for a means-tested pension.

The Government is preparing a Green Paper on pensions and I expect that this will be finalised by the end of this month. It will include a discussion of all aspects of our pension system, including the contribution of social welfare pensions to ensuring an adequate income for older people in retirement, which is at the same time sustainable in the long-term. Following the publication of the Green Paper, the Government will respond by establishing a framework for future pension policy.

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