Brian Hayes (Dublin South West, Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all words after “Dáil Éireann” and substitute the following:“takes note of the Government’s leadership and strong policy of remuneration restraint and sustainable pension reforms since taking office in March 2011, and in particular:

— acknowledges that all members of the Government accepted reductions in their pay on their first day in office;

— notes that this pay reduction will reduce the pensions paid to members of this Government on retirement;

— agrees that the pension levy stamp duty introduced by the Finance (No. 2) Act 2011 is a timely and legitimate source of revenue to the Exchequer;

— notes the significant reduction in public service pensions in payment before end-February this year introduced by the Financial Emergency Measures in the Public Interest Act 2010;

— notes the reduction in public service pensions coming into payment since end-February this year that results from the pay cut introduced by the Financial Emergency Measures in the Public Interest (No. 2) Act 2009;

— welcomes and supports major pension reforms brought forward by the Minister for Public Expenditure and Reform, including:

— legislating for the Single Public Service Pension Scheme;

— widening the application of pension abatement and service caps across the public service; and

— introducing a higher top rate of the public service pension reduction for those in receipt of public service pensions above €100,000;

— recognises that pensions are deferred income and are property rights; and

— acknowledges that the general public policy in the Financial Emergency Measures legislation (including the pension-related deduction, pay cuts and the pension reduction) is to reduce, in a reasonable and proportionate way, public service expenditure and in particular that the pension reduction applies in a tapered and progressive manner to public service pensioners.”

I welcome the opportunity to contribute to this debate. We are all aware that large pensions paid from the public purse cause a great deal of concern to our citizens. At a time of severe retrenchment, it is very difficult for people to accept that substantial pensions can be justified. However, it would be utterly wrong for people to believe or accept the premise that this Government has not addressed this issue since coming into office. Decisions to further reduce substantial pensions have been taken and this issue remains under constant review by the Government. Decisions can only be taken on a legal and constitutional basis. Devising pension policy based on the latest headline is a recipe for disaster.

Earlier the Taoiseach spoke about the moral responsibility on those former CEOs within the banking sector who retired on exceptional pensions.

See this speech in context