Mary Hanafin (Dún Laoghaire, Fianna Fail)

There is an important question to answer with regard to the post-retirement increases. In total, only a third of schemes actually guarantee post-retirement increases and because this measure applies then only to those companies that are restructuring because of their difficulties or that are winding up and are insolvent, it will apply only to a small number of that third which have guaranteed the post-retirement increases.

Legal advice on competition law, EU law and all of that was sought and the Attorney General is satisfied in that regard. I was satisfied it does not raise any questions in respect of EU state aid about which the Deputy asked because it is such a confined scheme and because of the insolvent companies and the pension funds in deficit.

The Department of Finance is working on the regulations and it is intended to bring them before the House very shortly.

On why this is a three-year scheme, it is an important scheme and it is equally important to see if it works properly or whether it needs to be tweaked.

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