Michael Collins (Cork South West, Independent) | Oireachtas source

This Bill is a significant step towards enhancing pension coverage in Ireland. However, like any legislation, it has its share of challenges and potential disadvantages. Employers will be required to contribute to the retirement saving system. For some smaller businesses, this additional financial burden may pose a challenge. While automatic enrolment aims to increase participation, some employees may resist being enrolled. They might prefer to manage their own retirement savings or have concerns about the impact on their take-home pay. The Bill does specify investment options or guarantee returns. The retirement savings of participants will be subject to market fluctuations, which could lead to varying outcomes. Establishing and maintaining the system will require administrative resources. Ensuring smooth operation, compliance and communications with participants can be complex. Although participants can opt out, some may forget to exercise this option. They might remain enrolled even if it is not in their best interest. The system's success depends on equitable contributions from employers, employees and the State. Ensuring fairness and preventing exploitation is crucial. While the Bill targets employees without existing pension schemes, there may still be gaps in coverage. Some workers, such as those in the gig economy and part-time workers, may not benefit fully. The success of the system hinges on its long-term viability. Adequate funding, efficient management and adaptability to changing demographics are essential. Depending on market performance, the accumulated savings of participants may not be sufficient for a comfortable retirement. If not well communicated, the automatic enrolment system might face resistance or scepticism from the public.

It is essential to address these challenges proactively and to continuously evaluate the effectiveness of the system to ensure positive outcomes for all stakeholders. If there is a market crash, a severe economic downturn will occur. This will cause investment portfolios within the system to plummet. Participant's retirement savings would suffer substantial losses, thereby impacting their financial security. If the administration fails, the administrative body responsible for managing the system would face inefficiencies. Errors or corruption, incorrect contributions, lost records and mismanagement lead to chaos.

The Bill states that employers will be required to contribute to the retirement saving system. How much more will the employers have to take on their backs? I was here in the House, and I think the Minister was here as well, when I questioned the Taoiseach. It was genuine, because I presume the situation is the same in Monaghan town as it is in Skibbereen. People are going out of business, one after another. They are banging up against the wall. Their doors are closing, and there is no sympathy coming from the Government. Warehoused taxes is the next subject they are worrying about. If we are, therefore, going to bring in something like this and put it up on top of the employers' backs, mainly, or partially, this will be another step leading to the closure of more businesses. This year so far, some 288 have closed, only in the past few months, including restaurants and cafes, and not a sympathetic ear is there on the other side of the House here. I cannot understand how out of touch a Government or politicians can be.

Surely be to God, it is obvious that the VAT rate needs to immediately drop from 13.5% to 9%. Maybe the Government can then start looking at asking employers to give some contributions. The minimum wage has gone up and the employers are aware of this. There are extra costs from water in and water out, waste, electricity, etc. I can name all the areas and everything here that is coming on top of employers. If it is a restaurant, a cafe or whatever, what happens is that these businesses have to put these costs on the table. This means people are not coming in. The Minister refers here to the retirement saving system posing an additional financial burden for small businesses and the participants. Certainly, however, there are businesses out there now that are in a desperate position.

I am shocked that this Government has not got a sympathetic ear for them. Last week, the new Taoiseach said these businesses would be given mentoring and advice. God Almighty, people were furious when they heard that. It was an insult to people who have been in business all their lives but are now going out of business. I ask the Minister, therefore, to have a sympathetic ear in this regard. Pensions are very important to allow people to have a few bob when they retire. Certainly, however, the employers should not be burdened any more.

See this speech in context