Clare Daly (Dublin North, Socialist Party) | Oireachtas source

The Minister is probably aware that yesterday there was a briefing in the House by the ESB group of unions. They represent 13,000 workers whose pension scheme is being unilaterally changed, from a defined benefit to a defined contribution scheme, along with serious funding problems whose cost is being transferred solely on to the shoulders of those workers. These people are about to join the tens of thousands of others - in the PTSB, the Irish aviation superannuation schemes, the Abbey Theatre, Waterford Glass, SR Technics, and so on, who face the prospect of being pauperised after a lifetime contributing to a pension scheme. Is it not clear that Irish society is now paying the price of an over-reliance on private pension schemes and the global capital market and that it is failing to provide for people in their latter years? There is a pensions timebomb in this country which has been ticking for some time, is getting louder and will explode. Is the Government going to stand idly by or is it going to do something about it?

The Government does not even have to struggle very hard in this regard because last week Social Justice Ireland came up with a proposal that would give it an answer to the situation and an opportunity to turn the existing policy on its head. This would start with the belief or fundamental principle that a retired citizen is entitled to the nation's gratitude and recognition of their consideration. A citizen is entitled, as of right, to a guaranteed income and standard of living upon retirement. The Minister has an opportunity to deliver this through the policy proposed by Social Justice Ireland, based on a universal pension scheme. SJI's proposal is to replace the present five or six schemes of contributory, non-contributory, widow's, etc., with a single scheme whereby a person who has reached the eligible age is entitled to a pension based on his or her residency. This would give security to all, allow people to plan for the future and get rid of the gaps that currently exist for many people, women in particular, who took time out to rear their children and in consequence have fewer contributions.

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