John Brady (Wicklow, Sinn Fein) | Oireachtas source

I welcome the opportunity to speak on this important legislation. Previous speakers have alluded to the fact that it is one of three Opposition pensions Bills that have been introduced, primarily due to Government inaction, to deal with this serious situation. Deputy Penrose's Bill is being discussed this evening. Deputy O'Dea's Bill is waiting alongside a Bill in my name. During Questions on Promised Legislation yesterday, the Labour Party leader, Deputy Howlin, asked the Taoiseach if he would be supporting this Bill. The Deputy opened his contribution by citing legislation that has been introduced in England to make it illegal for solvent companies to move away from their pension obligations. The pensions Bill in my name contains a similar provision, but the Bill before the House does not, unfortunately. I hope to propose an amendment in this vein if we have an opportunity to do so on Committee Stage.

The real nub of the issue we need to tackle is the need to prevent companies from walking away from their pension obligations to their workers. We need to stop solvent companies, many of which are very wealthy, from reneging on their pension obligations and walking away from the pension commitments they have made to their employees who have paid into pension schemes for many years. Ultimately, it is the employees who suffer. The Taoiseach spoke about job losses and putting companies out of business but we need to tip the balance back in favour of the workers who suffer in the scenarios that are becoming more common - the move from defined benefit schemes to defined contribution schemes and the closure of defined benefit pension schemes. Instead of looking at the impact on big business, the Government should be looking at the impact on workers.

The Social Welfare, Pensions and Civil Registration Bill 2017 was referred to Committee Stage on 4 October 2017, more than two years ago. At that time the Minister stated on the record that necessary amendments relating to DB schemes were being drafted by her Department and the Office of the Attorney General, which were to be ready and brought to Committee Stage that autumn. Since then we have heard about the delay in bringing forward these amendments due to their technical and complex nature. I find this hard to believe. At the same time, companies close their DB schemes whenever and however they feel like it. What the Minister and the Government did in 2017 was send out a signal to all companies looking to wind down their schemes that now was their opportunity to do so because it was possible that it would bring forward amendments. The Government gave them over two years to do what they liked and they are doing it because they can given no legislation protects pensioners when profitable companies decide to stop paying into their pension funds.

We saw the outworking of that in 2017 when Independent News and Media attempted to cease making contributions to its DB scheme. The latest of these schemes to close was Irish Life, the State's largest pension provider. Not only was the scheme not in deficit, it had a huge surplus of more than €200 million. The Government is sitting back and allowing workers to be left high and dry by large employers who are profitable and solvent but who no longer want to carry the risk of a DB scheme on their books. Instead, they want to put all of the risk on the employee and the Government stands by and do nothing while the company walks away. This has gone on far too long.

We have had issues with pension pots in Aer Lingus, Ryanair, Irish Life, Independent News and Media and, in all cases, the workers' pensions are at stake. Rather than concerning ourselves with how wealthy companies can afford to sustain their DB schemes, we should ask why the Government is letting them walk away.

We need to rebalance the scales. We need to ensure that where workers enter into pension schemes in good faith and make their contributions, their pension pot, at the very least, is protected and guaranteed. Otherwise why would anyone enter into a DB pension scheme?

The Government needs to stop hiding behind the difficulties in drafting amendments to offer protections to scheme members and get on with doing it. Although the majority of employers want to do the right thing by their employees' pension scheme, the Government has a responsibility to protect the small minority of employers who may be content to put their employees' pension pot at risk. We know that in England increased protections for DB pension scheme members were introduced while at the same time being able to balance the protection of members' benefits with the sustainability of the employers business, in recognition of what the Government is telling us, that DB scheme liabilities can be expensive for some employers. That is the balance that we have to strike here. If it can be done in England, then it can also be done here. The Government needs to take this issue head on before any more workers lose out, through no fault of their own. We need to stop employers taking the decision to renege on their pension obligations and where there are deficits in DB schemes, we need, where the employer is solvent, to put it up to that employer to keep their commitment to workers.

Sinn Féin will support the Bill. We will look to strengthen it and if given the opportunity at Committee Stage, we will bring forward amendments. We can bring in robust legislation that will protect workers and their pensions. It is shameful that the Government has allowed two years to elapse and put so many workers pensions at risk, giving the signal to employers that now is their opportunity to get out if they wish. The Opposition has three Bills before the House and I am delighted that Deputy Penrose's was chosen to proceed. We need to move to Committee Stage as soon as possible. We owe it to the workers and the pensions pots that they paid into in good faith over many years.

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