Timmy Dooley (Fianna Fail)

I welcome the Minister of State. The report was compiled in recognition of the difficulty of the impending liability associated with public service pensions. It has been well discussed and has informed this Bill. It is important that the issue is dealt with now, well in advance of when it will impact on the economy. From discussions in the House on the economy, Members are well aware of the importance of facing up to such a situation now. This is notwithstanding the fact that some concerns have been raised by different interest groups. This issue is on the agenda and it is important that it is addressed now rather than in a fire brigade action at a later stage.

Up to 280,000 people work in the public sector. I support Senator Fitzgerald's comments on the gross expenditure on public service pensions. Based on actuarial figures, the pensions bill is due to double between 1997 and 2012 and then quadruple between 2012 and 2027. Senator O'Toole has echoed the concerns of the unions on this issue and also that the Bill does not deal with the issue of early retirement. Notwithstanding that, a prudent approach must be taken to the financial management of the economy, which was not done in the past. The year 1987 is seen as a watershed in terms of how the economy was addressed and how certain measures were put in place to ensure the same problem never re-occurred. I would, therefore, be more concerned if the Government's effort was to retrospectively address this issue.

This Bill is for new entrants to the public sector. It will be like any contract available to a new employee. They will see from the start what they are getting into and they can make their own decision as to whether they choose the public service or their chances are better in the private sector. I admit that the safety mechanism for those in the public sector is much better than for those who chose to work in the private sector.

In establishing 65 years as a minimum retirement age, it recognises that we must address our changing demographics. The future is considered with good financial planning in mind and such issues will not be dealt with out of context at a later stage. The most important element of the Bill and the report is the capacity to address ageism. Ageism is one of the most outrageous perceptions evolving in this country. The manner in which we treat politics helps to inform the entire debate on ageism in our society. One only has to look around Europe and the US to see political figures such as Mr. Jacques Chirac who is 69 years of age and Mr. Berlusconi who is aged 67 years. Mr. George Bush senior was aged 64 years when he was first elected. However, there is a perception in Ireland that after 50 years of age, one is over the hill and any chances of high office are diminished. This perception informs all other elements in society. If this can be focused on, which this Bill does, there will be a much more mature approach to the concept of people's active involvement in life after 65 years of age.