Denise Mitchell (Dublin Bay North, Sinn Fein) | Oireachtas source

The issue of pensions has been discussed for a long time and the Government has now got around to publishing its plan, following on from the initial submissions that were sought for years ago. The Government is trying to address the fact that Ireland is the only state in the OECD without a pension saving scheme for workers after 25 years of its being talked about. However, we need legislation that is fair and equitable to ensure that pensions are secured for future generations. Unfortunately, this is a missed opportunity and we in Sinn Féin cannot support this Bill for a number of reasons. The first reason is that the Bill will lock low-paid workers into a scheme for the first six months, meaning that they have no choice but to tighten their already tight belts until the six months have passed where then they will be able to opt out. That is unfair on those who are struggling to make ends meet. The reality is that many people live week to week, but this Bill completely ignores that fact. The cost of living may feel like it has abated for those on higher incomes but many are still living on the breadline and that reality cannot be dismissed. The Bill assumes that they can afford to go without €20 or €30 of their income for six months but we know that many simply cannot.

The Government has indicated that the Pensions Authority will supervise the scheme. We have concerns that this scheme may involve the private pension industry. In our submission back in 2018 we proposed that the State play a lead role and that the NTMA would be central to this in managing these funds and investing them for the benefit of its citizens. We still believe that this is the best way forward. The NTMA would be best placed as it would prioritise the financial well-being of citizens into the future.

Employees and the protection of employees must be a central concern throughout this whole process but unfortunately that spirit is not reflected in this legislation.

We have all seen the impact of previous pension disasters on workers cannot be left in the hands of the free market. It is important that workers have faith in the system before it gets off the ground. A pension is something people rightly hold dear. It is their future and their security. It allows people to retire after decades of hard work and allows them to maintain their standard of living so they can enjoy the later years of life.

What we are discussing is fundamental reform of how pensions work. It is a missed opportunity on the part of the Government not to safeguard low-paid workers. The Government needs to listen to the criticism coming from the Opposition and go back to the drawing board on this issue. That is why we cannot support the Bill as it stands.

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