Dáil debates

Wednesday, 7 December 2016

Pension Equality and Fairness: Motion (Resumed) [Private Members]

 

6:15 pm

Photo of Joan CollinsJoan Collins (Dublin South Central, Independent) | Oireachtas source

One of the most regressive measures introduced by the last Government was the 2012 pension cuts, which disadvantaged tens of thousands of women who had taken a hiatus in their working lives. To put this in context, two thirds of those in the bottom two contribution bands are women, and they experienced losses of more than €1,000 per year to pensions that were already low. These penalties undervalue the crucial work women do in Irish society, not only in the workplace but also in social reproduction and the care work that is often unpaid but is absolutely essential to the fabric of society. Women should not be penalised for these essential contributions to our society. These reforms were also blind to the reality of working life in modern Ireland, where more and more people identify as underemployed, being in precarious work and often out of work for significant periods.

I want to respond to the argument, made by people like the Minister, Deputy Varadkar, that Ireland cannot afford to provide good pensions at 65 to all who need them, or that it would mean cutting elsewhere. This is a trick deployed by right-wing politicians to pit every campaign for justice and equality in this country against other people looking for a decent standard of living. It chimes with their efforts to create a free-market society - one where all of us compete against each other day in, day out for the crumbs off the table while a tiny number of people walk off with the cake.

The truth - I believe the people know this - is that there are many people with a lot who pay far too little in tax, and whose tax dodging is paid for by the rest of us. For example, businesses in Ireland pay less than half the European average in PRSI. In complete contrast with elsewhere in Europe, personal taxes on working people raise three times as much as their employers' PRSI.

In response to a parliamentary question, the Minister provided me with figures, showing that a 2% increase in the rate of employers' PRSI would yield an enormous €1.3 billion per year. It is ironic that it was the former Tánaiste and Labour Party leader, Deputy Burton, who introduced these pension cuts. Today a former Labour Party Senator, who is now working as a lobbyist in Retail Excellence Ireland, has stated that one of her tasks is to reduce employers PRSI. It seems that those who cut, then make sure that we cannot get any benefit from them. The money is available to give every elderly person in the State a decent pension, to ensure people can retire at a humane age and to reverse the discriminatory penalties against women, but the Government has made a political choice not to do so.

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