Dáil debates

Thursday, 25 January 2018

Leaders' Questions

 

12:00 pm

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

In recent days, the Government has given in to pressure and decided to partly address the anomaly that the Government created and voted for in 2012 when the former Minister for Social Protection, Deputy Joan Burton, made changes to the State's pension contribution rules. The Government ploughed ahead and voted for the cut despite having the discrepancies and anomalies pointed out to it at the time. I and my Fianna Fáil colleagues trenchantly opposed those changes in 2012. This decision was also made against the background of the blatant and crude raid on the private pension funds of hundreds of thousands of people to the tune of more than €2.4 billion.

Legislation was also introduced to undermine the very basis of defined benefit schemes, which led to the destruction of some of the largest pension schemes in the State, including the Irish aviation superannuation scheme and the Aer Lingus pension scheme. The imposed changes to band rates and entitlements to the State pension resulted in thousands of people, women and men, receiving a lower rate of pension. The changes included doubling the number of contributions required from 260 to 520 in order to qualify for a full contributory pension. It was a replacement of the bands that had been introduced in 2000. The Minister for Finance, Deputy Donohoe, speaking in a radio interview after the recent budget described the cuts as "bonkers" and "unbelievable", but he voted for the cuts. The Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, was herself exasperated, but she voted for the cuts. Deputy Joan Burton has said that she regrets those cuts, but she introduced them and voted for them.

The Government's decision resulted in some instances of people losing in the region of €30 per week, which is €1,500 per annum. This is a significant sum of money for most people, especially those who were solely dependent on the State pension. The Minister, Deputy Doherty, conducted a review after the anomaly was pointed out to her, and particularly after the Private Members' motion brought forward by my party colleague, Deputy Willie O'Dea, and Fianna Fáil which was agreed in this House. It was agreed unanimously, with the abstention of Government Members.

It was announced this week that the Government will partially address the anomaly by introducing a home carer's credit and letters will be issued to ask for evidence of those affected and asking them to liaise with the Department so the anomaly can be addressed. While this is a small step in the right direction that is welcome, many related issues remain to be addressed. The Minister is still not able to confirm how many people will benefit and she cannot rule out the fact that the pension regime will not impact on those who come to retirement in the next three to five years. The Minister also cannot confirm when 40% of those affected, who are men, will have their pension reductions addressed. Is the Tánaiste content that Ireland is now no country for old men? Is the Government anti-men? The pension's anomaly has to be addressed but it must be addressed for all of those who are affected and not just for the portion of people identified by the Minister. Is the Government committed to reversing the 2012 changes in their entirety and reinstating the former pension regime, which is the fairest way to proceed?

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