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

The Oireachtas legislates within the Constitution and legal issues concerning property rights are important, in particular given the possibility of challenge. A pension is generally taken to be deferred income and therefore covered by the constitutional protections that apply to property and any move to reduce a pension in payment, even one based in statute law, needs to be comprehensively founded. Otherwise, the courts might find that a restriction, however it might be justified by the exigencies of the common good, amounts to an unjust attack by the State on the rights of individuals affected by the legislation in question. This point was recently highlighted in a case before Mr. Justice McMahon. I encourage Members to read the judgment and, specifically, the judge's remarks on what is determined as unjust. In broad terms, the courts will seek to ensure that a delimitation of property rights by the State is justified in the exigencies of the common good and does not amount to an unjust attack by the State on the rights of individuals affected by the legislation in question.

Reflecting constitutional rights and general public policy, the financial emergency measures legislation, including the pension-related deduction, the pay cuts, and the pension reduction, have sought to reduce public service expenditure in a reasonable and proportionate way. It is evident the pension reduction applies in a tapered and measured manner to all public service pensioners. The preambles to the 2010 legislation clearly situate the pension reduction in the context of the financial emergency. There are also significant safeguards built into the statute, including an annual report to the Houses of the Oireachtas in June each year by the Minister for Public Expenditure and Reform, Deputy Howlin.

It is broadly accepted that further public service pension cuts could only be justified in the broad public interest. They would therefore have to make a real contribution to the fiscal adjustment and would have to be designed in a similar fashion to the 2010 reduction. Particular care would have to be taken about any measures that applies to a relatively small number of former public servants.

Clearly, there is public concern about large pensions and the Government is also concerned. The Government has moved to address these concerns within the law and the Constitution. We have done so in a sensible, fair and balanced way in contrast to the top of the head response from people with extraordinary sums of money for which they are not accountable.

It is essential that what we do is seen to be fair and equitable if people are being asked to accept fairly serious reductions in benefits or services.

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