Dan Boyle (Cork South Central, Green Party)
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Question 3: To ask the Minister for Social and Family Affairs his plans to establish a national forum to debate the issues raised in the recent national pensions review report; and the parties which will be included in such a forum. [4762/06]

Séamus Brennan (Dublin South, Fianna Fail)
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One of the most important policy challenges facing this country and this generation is the foundation for the future retirement in security and with dignity of all of our people. There is no quick fix for the problem that almost half the country's workforce of 2 million people do not have personal pensions. Ireland is not unique in having a future pensions problem. All around the world, governments and societies are grappling with the impending crisis of a population structure in which older people far outnumber younger workers. Ireland's response to the challenges and opportunities posed by this rapid social, economic and demographic change will influence the future shape of our society for decades to come.

The national pensions review, which was published on 17 January, is a comprehensive review of our pensions system, including the appropriateness of the targets we have set for ourselves and how we might make progress towards these in the future. Reforms are required if we are to reach our targets and the debate is about how we will do this. The Pensions Board has recommended enhancements to the existing voluntary system as the way forward. We may, however, need to consider much more radical measures, including a mandatory or quasi-mandatory system. This gives rise to some fundamental issues which, as a society, we need to debate.

For that reason, I intend, with the co-operation of the Pensions Board, to convene a national forum to debate the central issues and to hear the view of all stakeholders on the way forward. Planning for the forum is advancing and, subject to the availability of keynote speakers, I hope it will take place within the next two months. I will invite public representatives, social partners, industry representatives and those representing the interests of pensioners. While the main purpose of the forum is to hear the views of stakeholders on the conclusions of the national pensions review, I also intend to invite speakers to outline major reforms proposed or undertaken in other countries.

The Government and I will continue to show leadership and to keep pensions firmly on the national agenda. In time, the Government will reach conclusions on the various proposals and seek to achieve consensus on how best to lay down the foundation for the future retirement security that we want all to enjoy. I hope the proposed forum will help us in that process.

Dan Boyle (Cork South Central, Green Party)
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Where stands the Government's pension policy? The report of the Pensions Board made recommendations that the Minister did not want to hear. Some of the recommendations, bizarrely, seem to increase inequality in pension entitlements. The forum, which might have a value in itself, will meet and report while at the same time the Pensions Board is being reconstituted and going through the same process it went through in the review. When will the discussions and debates finish and the recommendations come to a head and be acted upon? These are decisions that will need to be made in the short term by this or any following Government.

Séamus Brennan (Dublin South, Fianna Fail)
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I have said many times that these are major inter-generational questions and I do not believe there is any quick fix for them. We are trying to begin a process that will allow for decisions to be made as quickly as possible. I have not delayed on this and I brought forward the national pensions review by a year. The review produced a raft of proposals within a few months, many of which are being considered by the Government. It made proposals about SSIAs, PRSAs and the retirement age. Some of these proposals have significant tax implications and some have almost philosophical implications. For instance, there is a view that the State has no business enforcing mandatory pensions on anyone while the counter view is that a just society should provide mandatory pensions. The Government decided to publish that report. I will shortly call the national forum to hear international views from speakers from around the world and then try to pull the debate together with concrete proposals in the course of this year.

I do not wish to give the impression that there is a quick fix solution. Half the population does not have pensions. The question is how far any Government should go in insisting that pensions are provided. Tax reliefs of more than €2.7 billion are currently available. The budget proposed a scheme for people to take their money out of SSIA accounts and invest it in pension funds on a once-off basis. The pensions issue is on the national agenda in a way it has not been for many generations. This is a good chance to bring it to fruition which is what I hope to do this year.

Dan Boyle (Cork South Central, Green Party)
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Will the Minister accept that following the budget measures the situation is now more confused with the Government taking short-term measures that may cause problems in the long term? There is no certainty about the long-term decisions to be made by him and the Government.

Séamus Brennan (Dublin South, Fianna Fail)
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The budget decision was very practical because the SSIAs are coming to maturity so the Government needed to move quickly to make it clear there was an alternative for those taking money out of an SSIA. The alternative is that if €7,500 of SSIA money is invested in a pension fund for retirement purposes, the State will donate €2,500 on top of that, being a cash payment to top up the €7,500. This means it will be possible to put €10,000 out of the projected €20,000 from an SSIA account into a pension fund. This will be a once-off payment because the SSIA money is once-off. The pension board review has recommended a version of this proposal to become a permanent feature and this will be decided upon in the course of the year.