Brendan Howlin (Wexford, Labour) | Oireachtas source

The Deputy asked a series of questions and I will try to go through them as best I can. First, she prefaced her comments with reference to the ESB pension scheme. This scheme is sound; we should acknowledge that. Changes were introduced in the scheme last year, by agreement with the workers. The new funding standards that have been set for all pension schemes have been set by the regulator, with the objective of having security of funding for pensioners into the future. The application of that new funding regime is currently being examined. That is what is taking place within the ESB

I refer to the broader pensions issue. This is an issue on which not only Ireland but all developed countries are focused. The Deputy is right in that many private sector pension schemes have taken a massive hit because of the collapse of equity values. Many of those values are beginning to recover so there is greater robustness in respect of the values of those pension schemes. However, the criteria demanded by the pension regulators are being increased to ensure there is a solvent and sustainable fund into the future. There is no question of us standing idly by. The Minister for Social Protection, Deputy Joan Burton, has been very active in examining these matters and has contributed to many debates in this Chamber. I am sure the Deputy can pursue these issues with her.

In regard to the specific proposal made by Social Justice Ireland, I and the Minister for Finance, Deputy Michael Noonan, met that organisation last week. We have heard its comprehensive set of proposals on this and a range of other issues which, as is the case with all submissions, will be taken into account very carefully.

The Deputy spoke about tax benefits to private pension funds. As she knows, the Minister, Deputy Noonan, announced in last year's budget that we are ending tax benefits to any fund or any individual once a pension of €60,000 had accrued. That is a fundamental change and legislation to enact it will shortly be introduced.

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