Brian Lenihan Jnr (Dublin West, Fianna Fail)

The deferral arrangements for annuity purchase which I announced recently are by definition temporary. However, as Deputy Burton suggested, if present conditions persist over an extended period, that issue might have to be revisited. Changing the scope of the existing ARF arrangements is one of a range of issues to be addressed in the long-term pensions policy framework being developed by the Government.

Some speak of extending the ARF option as though it was a panacea for the problems of the pensions area. It is an important issue but not as simple as it is portrayed. There are arguments for and against extending it to pension arrangements where they are not available at present. The arguments are set out in the Green Paper and relate to the whole question of balance.

I was giving Deputy Burton attention when she asked about the accounting treatment of pension funds at present. As I understand the position, and the Deputy will appreciate it is a prudential issue rather than a revenue issue so I am speaking without the benefit of official advice, there is an EU requirement in regard to the accountancy standards that must be observed.

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