Peter Roche (Galway East, Fine Gael)

I thank the Minister for his statement. Like others, I welcome the scheme, which is going to give greater security to people entering into retirement. It is an important and necessary ambition. Too many people, particularly those in the private sector, risk reaching retirement age with only the State pension to rely on. In principle, I think the concept is good.

However, in my engagement with businesses right across east Galway, they have raised concerns. I have met many of business owners, including those running shops, cafés, garages and SMEs. While they are not opposed to the idea of pensions for their employees, they are deeply worried about how the scheme might impact on them financially. These are businesses that do not have the luxury of dedicated HR departments. They are family-run or community-run operations where the same person is managing stock, dealing with suppliers and, of course, serving customers. For them, the additional administrative burden of auto-enrolment feels a little bit daunting. Many tell me that they have little or no communication about what exactly is required of them.

Beyond the administration, the financial concern is even greater. As mentioned by other Deputies, many of them are operating on very tight margins and even a modest additional cost can tip the balance. Employers are asking if this new obligation will mean they have to cut back on hours, delay taking on new staff or reduce other forms of support for employees. They worry that what looks like a small percentage increase on paper could in reality be the straw that breaks the camel's back.

I know the Department has pointed to the phased introduction of the contributions, with a ten-year lead-in period, as evidence that businesses will have time to adapt. That is broadly welcome but from what I am hearing on the ground, the message is not really landing. The communication campaign, the buses, the adverts, and the online content are simply not reaching the many shopkeepers in rural Ireland and those micro business owners who are already juggling a dozen other responsibilities. What is needed is direct and targeted outreach to SMEs so they can be mindful of the unintended consequences that may emerge. Unless this is implemented with sensitivity to the realities facing both employers and employees, it risks breeding resentment rather than reassurance. Employees in certain circumstances say that they would prefer extra take-home pay now over pension contributions, and they cite tight weekly budgets.

I thank the Minister because, overall, I think that people will have time to adapt and inform themselves. I welcome the concept in principle and I welcome the scheme.

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