Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 5: To ask the Minister for Social and Family Affairs the reason for the delay in the publication of the long-term pension framework; and if she will make a statement on the matter. [25550/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Since the Green Paper on pensions was published in October 2007, the Government has been progressing policy in this area. We have also responded to meet the immediate difficulties facing employees, especially those in defined benefit schemes, who saw both their companies and pension schemes facing difficult situations. The collapse in equity values and the economic situation combined to create severe difficulties for people who saw significant reductions in their potential benefits as a result.

The Government moved to protect people's entitlements through measures announced last December and the recent legislation passed in the Social Welfare and Pensions Act 2009. These include the establishment of a pensions insolvency payment scheme, a reordering of wind-up priorities, provision for restructuring of pension benefits and stronger regulation with regard to remittance of pension contributions. Where decisions have been required to protect people's entitlements, the Government has moved quickly to assist pension scheme members. We have also been engaged in discussions with the social partners on key issues, including pensions.

The Government is aware that the wide and long-term pensions policy issues require a comprehensive and co-ordinated response. Following the conclusion of the successful consultation process last year, we have been considering several options to address the challenges facing our pensions system and which were raised in the Green Paper process. These issues relate to social welfare pensions, the sustainability of our pension system generally, the adequacy of current provision, and other complex issues around regulation, public sector pensions and retirement age.

As I have previously said in this House, it is the intention of the Government to deal with all of these issues. Over the past year, the economic environment has changed considerably and we need to ensure any decisions we make in the pensions area are robust enough to withstand new and unprecedented challenges. It is entirely appropriate that the Government takes the time to arrive at sound decisions about the future of our pension system, given the potential of such decisions to impact significantly on this and future generations. Our objective is a system which will deliver an adequate retirement income for all which is, at the same time, affordable and sustainable for the State and for those who sponsor and provide pension schemes.

The Government has responded quickly to the severe difficulties facing defined benefit schemes. We will continue to discuss further reform options for inclusion in the national pensions framework and I expect that this will be published this year as announced in the partnership talks.

Olwyn Enright (Laois-Offaly, Fine Gael)
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I thank the Minister. She may think it entirely appropriate that the Government takes time but it has taken 12 years with little or no progress. There has been a little progress on defined benefit and none on the overall pension problem. I am glad the Minister says the framework will be published this year but on Question Time at the end of April she told me it would be published in a couple of weeks. That was two months ago. A couple of weeks is a fortnight. The end of the year is a long time away. We are only half way through the year. Will the Minister give a more definite date?

The OECD says that 30% of Irish pensioners live in poverty. A year ago when we asked questions about this I said that fewer people were going to want to invest in a pension because of their fears about how they operate and the Minister said that would not be the case. Only a quarter of Irish people now think it is a good idea to put money aside for their retirement. The longer the Minister leaves a decision on pensions the bigger the timebomb she is creating for the country. One million people are due to retire over the next 20 years. By making progress on this issue the Minister can give them some certainty about their retirement. They do not have that now. People are terrified. What she has done so far is nothing compared with what needs to be done. Will the Minister provide the House with a more definitive date? Does she have any idea what is being considered by the Government because an element of private sector workers feel they have been ignored in what has been done so far?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I am aware that I indicated that it might be sooner than now but the Government has decided to give it further consideration and that is its prerogative. However, the paper circulated to the social partners this week indicated that it would be done this year. As I outlined, we have genuinely been working very hard on a number of issues that are most relevant to people today and the fact that publication of the framework will be a number of months later than I had indicated should not delay its implementation because it was never going to be implemented in 2009 or 2010 anyway. I had always indicated that as in the UK it would probably start in 2012 approximately.

The number of people investing in their pensions has increased. Surprisingly, given the way the market has gone there are indications that people have started to provide even more for their future. I know that the particular age group in which we hoped to see an increase to 70% is at 61% so it is moving in the right direction.

The OECD report refers to figures from 2005 and since then the non-contributory pension has increased by 32% and the contributory pension has increased by 28%. The authors of the OECD report recognise that the increase in public pensions since 2005 will have improved the economic position of older people and they recognise that significant progress has been made in those years. As we know, the consistent poverty rate for older people has fallen to 2% from 3.7% in 2005 so progress has been made. The OECD report, while critical, has not taken into account the improvements made in the past four years.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The improvements relate to the State pension; they do not relate to the plethora of other pension areas which have not been improved, rather have seen a disimprovement. The Minister mentioned an implementation period of 2012 and I know she stated that previously but it is much too far away. Either way, the report still needs to be published so people know what will be there and can make plans because the crucial aspects of pensions are planning and time. Does the Minister mean publication at the very end of the year or during the summer? Does she have any idea of a wider timeframe?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I certainly do not mean during the summer but as soon as possible thereafter when we get agreement from the Government. It is crucial and it will impact on private pensions, social welfare pensions and public sector pensions-----

Olwyn Enright (Laois-Offaly, Fine Gael)
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The Government has had 12 years. It did not come up last week.

Róisín Shortall (Dublin North West, Labour)
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This delay is a disgrace.

Olwyn Enright (Laois-Offaly, Fine Gael)
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The value of people's pensions has been wiped.

Róisín Shortall (Dublin North West, Labour)
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It is an absolute disgrace that the Minister is dragging her heels like this on such an important issue.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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As I indicated previously, a good lead-in time to the implementation time is required and I hope this will not have been affected by the fact that it has not been published.

Róisín Shortall (Dublin North West, Labour)
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The Minister is twiddling her thumbs on a very important issue.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I think that 2012 is a reasonable timescale which would allow people to prepare for it and to have the legislation and structures in place to allow it.

Róisín Shortall (Dublin North West, Labour)
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It is an absolute disgrace. The Minister is dodging another important issue.

John O'Donoghue (Kerry South, Ceann Comhairle)
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We will now move on to Other Questions. I must point out that on Priority Questions only the Member who tables the question may ask supplementary questions on it under the Standing Orders.

Róisín Shortall (Dublin North West, Labour)
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Are we out of time for Priority Questions?

John O'Donoghue (Kerry South, Ceann Comhairle)
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We are.

Róisín Shortall (Dublin North West, Labour)
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The Ceann Comhairle stated that we had half an hour.

John O'Donoghue (Kerry South, Ceann Comhairle)
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I allowed a little leeway but I cannot be expected-----

Róisín Shortall (Dublin North West, Labour)
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Does Priority Question Time end after half an hour or not?

John O'Donoghue (Kerry South, Ceann Comhairle)
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What happens is that six minutes are allowed to each question and I have the discretion to allow the Priority Question to proceed a little longer to oblige the Members and I did so in the circumstances.

Róisín Shortall (Dublin North West, Labour)
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With all due respect, my question was whether Priority Question Time ends after 30 minutes?

John O'Donoghue (Kerry South, Ceann Comhairle)
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Strictly speaking it does-----

Róisín Shortall (Dublin North West, Labour)
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Thank you.

John O'Donoghue (Kerry South, Ceann Comhairle)
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-----but the Chair has the discretion and the power to extend it to facilitate Members and I did so.