Séamus Brennan (Dublin South, Fianna Fail)

There are 2.8 million contributors to the social insurance fund. Expenditure in 2005 was €5.6 billion, a substantial part of which went to pensioners and the income to the fund was €6.1 billion. Employment is strong and income from employment is growing. The review before the Government examines it from 2006 to 2061, a long-term financial economic strategic review. In the short term, the fund is likely to be very sustainable. However, as demographics change and we head from a 4:1 to a 2:1 worker to pensioner ratio in the next 50 years, the costs of pensions will grow substantially. That is why the Green Paper will assist in the debate on pensions.

For example, there is a commitment to increase the State contributory pension to €300 a week. That will cost approximately €1.5 billion. Proposed increases in other social welfare payments will bring the cost to €2 billion in a full year. The social insurance fund must be maintained in a healthy position. For 40 years it was in deficit but in the past decade it has been in surplus. It is the Government's intention that it will remain so. Any policy decisions which affect the fund's surplus must be made up by the Exchequer. Undeniably, there will be pressures on the fund in the long term.

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