Joan Burton (Dublin West, Labour)

The Labour Party welcomes this Bill. In our submissions before the budget we called for clear reductions, particularly in the situation where former Ministers receive pensions while still Members of the Dáil. It is a pity the Minister had neither the political guts nor the capacity to introduce the reforms he promised with such grand rhetorical flourishes on budget day. On that day, he proposed that Members of the Oireachtas and Government would show leadership in a time of deep, national economic crisis by offering an appropriate level of sacrifice in respect of pay reductions, as was appropriate, particularly when they were asking many poorly paid people or people on poor pensions to take sacrifices. It is regrettable for the reputation of the Dáil that the Minister had not got political clearance from his party to bring in the reforms he so grandiloquently mentioned in his Budget Statement to a packed Chamber.

The Minister is aware that I and Deputy Gilmore contacted him on the matter of ministerial pensions. We did so some time ago and made arrangements to offer our ministerial pensions to the Government and that offer was accepted.

With regard to the new arrangements being made, the public is not generally aware that people who served in Government before 1993 got a full ministerial pension on exiting Government, no matter what age they were or no matter whether they left the Dáil or remained in it. They got a full ministerial pension from the day they ceased to hold ministerial office, provided they had sufficient service. It seems odd therefore that in the arrangements of this Bill the Minister has not yet been able to do away with that anomaly. When the Labour Party and Fianna Fáil were in Government after 1993, the arrangement thereafter - to which the Minister referred and which was much more sensible - was that the people who had the required service received a pension from the age of 55. They received the pension whether they were serving in the Dáil or not.

A sensible move was also made at that time to put in place transitional arrangements for people who lost their seats who would suffer a sudden severe loss of income. That was properly recognised and a sensible arrangement was made. Therefore, I find it odd that in this legislation the Minister does not switch everyone to the arrangement that was agreed by both the outgoing Government and the incoming Fianna Fáil-Labour Government at the time, namely, that persons who were entitled to a ministerial pension received it from the age of 55. I understand that the arrangement provided for in this Bill is that persons serving under the old system - probably six or seven current Members, including senior Fianna Fáil Members and a former Taoiseach - will, until the next Dáil get 75% of their pension. That is quite a high level, whereas others will -----

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