Brendan Howlin (Wexford, Labour) | Oireachtas source

Last Friday, the Minister for Public Expenditure and Reform, Deputy Paschal Donohoe, when speaking on "Morning Ireland", indicated that he intends to seek to negotiate a further extension to the Lansdowne Road agreement. While noting that these negotiations would be challenging, he made it clear that he would not comment on possible negotiating positions until after the report of the Public Service Pay Commission. He said that doing so would make the existence of the commission pointless. The Taoiseach will recall that I argued that these discussions should have begun sooner. I believe some of the industrial unrest we have witnessed in recent months could have been prevented had that been the case. However, at least there appeared to be some logic to the position put forward last Friday by the Minister, Deputy Donohoe.

Today we see a mockery of that approach when we read in the Irish Independentabout the Government's plan to attack the so-called gold plated pensions in the public service. Clearly, that newspaper has been briefed on the Government's negotiating strategy, and that strategy has been established without waiting for the Public Service Pay Commission to report. We must now question whether that body is pointless, to use the Minister's word. We have legislated for career average pensions for all new entrants to the public sector. That measure will lead to a significant saving, estimated at 35%, in the future cost of pensions. It is also a reasonable measure, not least because those who are affected are aware of it and can plan for it from the moment they begin their careers. The strategy leaked today is a very different type of approach. The introduction of a career average pension for existing public servants would particularly hit those who are now approaching retirement. People approaching retirement will have considered what pension they will receive, will have planned for it for 40 years and will have planned their retirement on that basis. A dramatic cut to their pensions just before they retire would leave those plans in tatters.

I understand the desire in Fine Gael to be as tough as possible on the public sector - in many ways it is a dog whistle to the right wing voters they are seeking to court - but that is wrong with regard to public sector pensions. The average public sector pension is approximately €20,000. There is not much gold plating involved in that. The Taoiseach will also be aware of the clear legal advice of successive attorneys general that pensions are preserved property rights under the Constitution. What is the Government's exact position on the pension rights of public servants? Why was a position that cannot be constitutionally achieved briefed to the Irish Independent?

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