Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)

I move amendment No. 33:

In page 45, to delete lines 28 to 43 and in page 46, to delete lines 1 to 22.

We are opposed to the switch to linking pensions to the consumer price index. It will leave public sector pensioners worse off in the future. The current scheme includes a guaranteed link between public sector pensions and public service pay. That link is to be broken and pensions are to be linked to the more vague and volatile consumer price index.

We are also concerned that the Minister is to have discretion as to when increases related to the consumer price index will be paid.

During the debate on Committee Stage, the Minister gave an assurance that this would not be a problem. It seems, however, that the legislation allows the Minister not to grant pension increases. The power is entirely in the Minister's hands. There is, at least, the possibility of a lag between a rise in the consumer price index and the granting of a public service pension increase. Pension increases will not be automatically linked to the CPI but will be at the whim of the Minister of the day. That is a problem.

The savings the Government expects to make from this change are significant. It is difficult to see how such significant savings could be projected from this measure if it did not mean a worsening of the pension entitlements of public sector pensioners in the future.

We are opposed to anything that would degrade the quality of the pensions of ordinary public sector pensioners. We would not have a difficulty if these changes were aimed at the top earners in the public service. In fact, we would welcome that. This is going to hit ordinary public and civil servants and degrade the quality of their pensions in the future. This is unacceptable and we oppose this measure. We believe the status quo should be retained.

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