Donna McGettigan (Clare, Sinn Fein)

We in Sinn Féin agree with the concept of an auto-enrolment pension scheme. There is no doubt that, with an ageing population, provision will have to be made for such a scheme in order to supplement the State pension. However, this is the wrong scheme at the wrong time. It is vital that any enrolment scheme is properly designed and managed for the benefit of the people when they retire. There may be a very good reason why people are not already signed up to the pension scheme. They simply may not be able to afford to do so. For the Government to decide that it can take the money from them at a time of a cost-of-living crisis is outrageous. In-work poverty remains a serious problem in this State and the Government’s policy significantly contributes to this. There is an unacceptable risk that this auto-enrolment pension scheme will exacerbate that problem.

Throughout the State, there are pockets of persistent disadvantage, including in my constituency of County Clare. People are working hard but are still struggling to pay their bills. Rents and mortgages, food and fuel prices and the cost of everything else are increasing constantly. In late summer, there are extra expenses relating to back-to-school costs. During the winter, there are extra fuel costs. Taking a set amount of money from workers’ wages every week could inflict suffering on families. Taking any proportion of their incomes would make their struggle even more difficult.

It is unacceptable that workers have to wait six months to opt out and must then wait for a refund of money they could not afford to pay in the first place. The Government will be inflicting significant hardship on low-paid workers. Perhaps €20 or €30 does not mean anything to the Minister of State, but it is a lot for the people I know. Workers must be allowed to decide for themselves whether they can afford to pay contributions to a pension scheme. Making it compulsory for any amount of time completely fails to take into account the stress low and middle income earners are under. This also comes at a time when the Government is rowing back on the cost-of-living supports that are vital to keeping people’s heads above water.

Another problem with this legislation is that it would hand the money to the private pension industry, whose main priority is profit. It will be left in control of not only workers’ pension contributions, but also those of the employers and the State. This is potentially a huge cash cow being handed to private companies for them to profit from. This will amount to nearly €1 billion in the first year alone and up to €2 billion in subsequent years. We believe that any contributions made by those who can afford to do make them should be invested by the State for the benefit of the people. For example, investment in renewable energy sources would result in lower energy bills for everyone, which would offset the money people have to spend on their pension contributions.

We accept that an auto-enrolment scheme will be needed, but this is not the right scheme and, during a cost-of-living crisis, it is not the right time.

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