Seanad debates

Tuesday, 18 February 2003

Finance and Related Matters: Statements.

 

Workers expect a fair share of the dividends of their efforts and want to be able to look to the future. An extraordinary error was made in UK legislation in the last two years and I understand it has ramifications for people in this country. The UK Act requires that pensions balance themselves on an annual basis, which is impossible to achieve as it goes against the philosophy and theory of pension planning. It seems that some companies may not be able to meet their long-term pension liabilities. Workers need to be protected in such circumstances. It has been suggested in recent times that we should tighten our pensions legislation to ensure pension funds are not based on the company for which the pension holder works. I recently discovered that the pension fund of a major store, involved in a possible takeover, holds 12% or 13% of the company's equity. It seems like a huge investment. A great deal of negativity has been associated with the collapse of Enron but we should not forget that the company's pensioners had hugely invested in Enron equities. They lost out in two ways as a result. I ask the Minister of State to bring this matter to his Department for consideration.

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