Eamon Gilmore (Dún Laoghaire, Labour)

At the last general election, there was one issue on which all political parties were agreed, namely that the level of social welfare pension should be increased to €300 per week. In addition to committing to increase the pension to €300 per week, the Taoiseach's party also promised to cut the PRSI rate by 2%. When that promise was made, the Government had in its possession an actuarial review of the social insurance fund — the Government refused to publish it at that time but it was published last week — that showed that the social insurance fund would begin to go into deficit in 2010, in three years time and according to the analysis that has been done since, the shortfall could be as high as €12 billion by 2016. I have three questions related to that. When will pensioners get €300 per week? Will the Taoiseach go ahead with the promised reduction of 2% in PRSI? How does he propose to square the circle? The cost of the promise on PRSI is €640 million and the cost of the €300 pension is just over €2 billion per year. During the election the Taoiseach said he would make up the shortfall from general taxation. What increases in taxation does he intend to make up that shortfall?

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