Brian Cowen (Laois-Offaly, Fianna Fail)

The 116 funds are pre-budget 2006. We are discussing the historical position, that is, the level of the funds were recorded on budget day and they were not created thereafter. I can arrange to provide the bands information.

The SSIA scheme was an attempt to inculcate a savings culture and to determine how to develop simplified schemes. It worked well and, at the time, received the support of everyone in the House. Many people took up the offer. The SSIAs have proven successful in terms of making people aware of what is possible and their provisions were quite generous.

Having re-established saving as a part of modern life, the next step is to try to find a pension path for people who have traditionally not regarded pensions as being for them. Many had good reasons for this attitude, such as spending their limited incomes on day-to-day requirements and being unable to consider the next day. Those involved in pension provisions or who can consider them as options have a greater degree of discretionary income. It is tax relieved on the way in and the lump sump is fully taxed on the way out. It is a fair taxation mechanism. It is a good public policy objective to ensure that people are not totally dependent on State-provided pensions when they reach retirement age. As this is not the experience for more than half of the population, we must address the issue.

If I have this responsibility after the election and in the context of social partnership, the detailed work of the pensions board and ongoing work, I would be anxious to make decisions based on the available information and to have those with an interest in this matter to make their opinions known through a Green Paper process, which is the transparent way of addressing complicated matters and long-term policy issues. I have listened to Deputies, but I am not in a position to accept the amendment, given the advanced state of the work.

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