Mary Lou McDonald (Dublin Central, Sinn Fein)

Pensions in the public sector account for 13.9% of the total pay and pensions bill. As everyone is aware, the overall bill has increased by 66% since 2006. This figure does not take account of all those who will retire before the end of February 2012.

The major problem in this regard relates to the existing pension regime and the fact that the Government still believes it is acceptable to shell out for excessive pay and pension packages. The Minister will state the new single pensions scheme has been agreed with the troika, that public sector numbers are down, that new public service entrants are subject to a 10% reduction in pay rates and that public sector pensioners are feeling the brunt of the reduction in public service pensions which came into effect at the beginning of the year. All of this is true. However, it is also true that public servants on low and average incomes are feeling the pinch of the cuts and that there are knock-on effects for members of the public as a result. The majority of public service pensions work out at an average of €20,000 to €30,000 per year. However, over 100 retired civil servants each receive over €100,000 per year in pension payments. This figure does not include retired judges, hospital consultants, senior gardaí or county managers. In the light of the fact that the Civil Service makes up just 10% of the overall public sector, I do not believe it is a stretch to say there might be approximately 1,000 retired public servants who are in receipt of the whopping €100,000 per year pension payment.

It is disturbing that the Department of Public Expenditure and Reform does not collate data in respect of this matter. The Minister has admitted that he does not know the number of public sector workers who are in receipt of bumper pensions. I accept that the people concerned - the former top brass in the public sector - are in a minority, but the fact is that each bonanza package awarded to one of them would cover the cost of multiple average pensions. It is on this basis that I find it astonishing that the Department does not receive and collate data of the type to which I refer.

This legislation presented the Government with a major opportunity to step up to the plate and tackle excessive pay and pensions among those in the highest ranks of the civil and public service. As the Minister is aware, I have continually made reference to the pay-off which Mr. Dermot McCarthy, former Secretary General to the Government, received. The eventual cost to the State of Mr. McCarthy's package will be €6 million. He obtained a special severance gratuity of €142,670 and received his full pension at the age of 57 years - not at 70 or anything close thereto - without an actuarial reduction being imposed. On each occasion on which I raise this matter with the Minister, he invokes the Top Level Appointments Committee, TLAC. I must again state he is studiously ignoring the specific powers granted to him under the Superannuation and Pensions Act 1963 to rescind such payments to and added years for those who occupy the most senior echelons within the public service. TLAC cannot overrule the law of the land. It is worth reminding the House and the Minister that the Secretary General to the Government and other senior public servants are members of TLAC. We must ask if that is best practice or even acceptable. The Minister stated that terms approved on the appointment of current Secretaries General will be honoured by the Government but last week he told the House he was grappling with the excessive pay and pensions of those who currently occupy the highest ranks of the public sector. He believes, as has been stated today, that the indefensible pay and conditions represent a legitimate expectation, but in a time of austerity and hardship, I find that utterly astonishing. The likes of Dermot McCarthy, regulators, Bertie Ahern and Brian Cowen are cushioned, as are others who made at least some contribution to our current woes. That is not on and politically and legally it is a significant missed opportunity for the Government not to address this matter now.

I understand we will deal with the detail of the Bill on Committee Stage, which is appropriate, and we will bring forward amendments referring to the issues I outlined in my contribution. Sections 60 to 64, inclusive, deal with salaries, particularly of future judges, and the Minister should ensure not only that the salaries of future judges are addressed with all due haste but also those of serving judges. I know reductions have been made in respect of the pay of the Taoiseach, the Tánaiste, Ministers and so on but these have not gone far enough and they should go further.

Section 10 contains a curious provision exempting certain persons from the new scheme if they leave and return to the public service. On the face of it, that seems reasonable but on further consideration it seems to be tailored for Members of the Oireachtas, MEPs and others who lose their seats before returning to a seat they previously held. The Bill provides that those people would have the terms and conditions of the old scheme applied, which is unacceptable and will fuel a very virulent cynicism among taxpayers and citizens as they look at the political class.

I welcome the fact that we have legislation and that it is geared towards full provision, especially for those on lower incomes. I note some of the flaws of the Bill, which will create a de facto two-tier system, and I do not accept that these new conditions can only be applied to new entrants. I ask the Minister to substantiate his claim that it would be legally problematic to apply the new scheme across the board.

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