Dáil debates

Tuesday, 24 April 2018

Community Employment Pension Scheme: Motion [Private Members]

 

9:00 pm

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I move amendment No. 1:

To delete all words after “integral to the overall success and implementation of the CE schemes” and substitute the following:“— in July 2008, the Labour Court recommended that an agreed pension scheme should be introduced for CE supervisors and assistant supervisors;

— the employees in question are, or were, employees of private companies and have not made a pension contribution, notwithstanding the fact that the companies concerned are, or were, reliant on State funding;

— a high level forum comprising trade unions and Government departments and agencies was established to discuss certain issues pertaining to the community and voluntary sector and these discussions have included the issues arising from the 2008 Labour Court recommendation;

— any consideration of this matter must have regard to the costs and precedent of such an arrangement were one to be created, particularly in light of the large size of the community and voluntary sector in Ireland;

— in this regard, a detailed scoping exercise was carried out with input from the Irish Government Economic and Evaluation Service (IGEES) on the potential costs of providing exchequer support for the establishment of such a pension scheme for employees across the community and voluntary sector in Ireland;

— this exercise shows that this matter presents very significant issues for the exchequer, with a potential cost to the State of €188 million per annum in respect of funding to enable an employer pension contribution in State funded community and voluntary organisations, excluding any provision for immediate ex-gratia lump sum payment of pension as sought (which could, depending on the size of the sector, entail a further exchequer cost of up to €318 million);

— while CE supervisors and assistant supervisors represent only a part of the wider community and voluntary sector, any provision of State funding for such a scheme in respect of those employees could potentially give rise to claims for similar schemes on the part of those in the broader sector, thus crystallising the potential level of liability mentioned; and

— accordingly, any solution to this issue will require careful consideration, must have regard for all community and voluntary sector employees and the implications for scarce exchequer resources.”I wish to share time with Deputy Fitzpatrick. I apologise on behalf of the Minister for Public Expenditure and Reform and the Minister for Employment Affairs and Social Protection who are unable to be here tonight. I am, therefore, taking this matter on their behalf.

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