Willie O'Dea (Limerick City, Fianna Fail) | Oireachtas source

The thinking behind these amendments was discussed at some length on Committee Stage, and I support them. In its wisdom, the OECD recommended a certain course of action, which is what is proposed here. I am sure it examined very carefully all of the arguments with regard to various jurisdictions, as well as the arguments specific to this country, and recommended that we do what every other country does - particularly our nearest neighbour the United Kingdom - which is to prevent financially healthy, solvent companies from closing down their defined benefit pension schemes. The Minister's advisers seem to have taken a different view from the OECD with regard to the wisdom of doing this, for what reasons I cannot quite fathom.

Companies would not be in danger of being plunged into bankruptcy if we brought forward this provision to compel them to close their defined benefit pension schemes until they had reached a specific threshold in order that the commitments made to retired employees could be honoured for the most part. This provision concerns companies that are financially healthy and could well afford to keep their pension schemes open. Whether they are subsidiaries or parent companies, if they are financially healthy, it is, by and large, due to the efforts of those who will benefit from the defined benefit pension scheme. There is no logic to or justice in failing to place an obligation on them. Perhaps we might agree a lower figure than 90%, but there should be an obligation on them. Companies should not be allowed to walk away scot-free and leave their employees hanging.

On Committee Stage the Minister said if we were to do this, more companies would close their defined benefit pension schemes. When will they do it? We are supposed to conclude the legislation today and it will be signed by the President shortly. Will there be a rush in the meantime by solvent companies to close their schemes or can the Minister table an amendment to make this proposal effective from today, which would cut off that opportunity for them? In the interests of justice and fairness, we cannot say we are introducing legislation, while, at the same time, remaining the only country in the civilised world that permits employers to enter into defined benefit pension schemes with employees and then to walk away for no reason or to decide unilaterally to close them, regardless of how successful their employees have made the finances of the company. Will the Minister give serious consideration to this set of amendments?

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