Terry Leyden (Fianna Fail)

I welcome the Minister for Social and Family Affairs, Deputy Brennan, and congratulate him on his appointment to this very important portfolio. He has considerable experience in politics and in Government, which he can bring to it. It is one of the most important Ministries because it involves looking after those who need assistance and support.

That this Government is left of centre and has socialist leanings is demonstrated by the fact that it looks after the elderly, disabled, handicapped and widows so well. Compare the Government's approach to that of the Workers Party and Democratic Left when Proinsias De Rossa was Minister for Social Welfare and when there was a Labour Party Minister for Finance. They gave the lowest possible increase to pensioners, amounting to approximately 2%. We have increased pensions by 69% since 1997, and rightly so, and we looked after pensioners so well. What better judgment is there of a Government?

Senator Ryan mentioned the great benefits introduced by a former Minister for Finance and former Taoiseach, Charles J. Haughey. He introduced the unique schemes providing free travel, free electricity and free telephone rental. He once told me that when he first conceived the idea, the Department of Finance made every effort to prevent him from announcing it, to the point of trying to convince him not to do so until he reached the very door of the Chamber of Dáil Éireann. He was convinced of the merits of the schemes.

He conceived the idea of free travel for pensioners at a train station through which he saw a very empty train passing. He asked why the train should not be filled with people and why pensioners should not be given a chance to travel on it. This should be placed on record because sometimes people are vilified and not recognised for the contributions they make to Irish life.

I welcome the commitment by the Government to increase the pension rate to €200 per week by 2007. This will be realised even before this date if the Minister has his way. I believe it is his ambition.

When one reaches retirement age at 65 or 66, one receives a contributory or non-contributory old age pension, possibly in addition to a pension from another source, be it from CIE, the ESB, a county council or a local authority. A constituent of mine expressed strongly to me the view that one's pension should be exempt from income tax. This is not the direct responsibility of the Minister but he should consider it nevertheless. If one considered the contribution to Irish life of pensioners and calculated their contributions to the pension fund during their working years, one would surely conclude that pensioners should be relieved from the responsibility of paying income tax on their pensions. While the costs of doing this would have to be calculated by the Minister and his officials, it is a very worthwhile proposal.

The constituent in question, a very active Fianna Fáil supporter, made the point that he had spoken to many retired people who felt it was grossly unfair that, on reaching a point in their lives at which they should be free to enjoy their remaining years, the State would make them liable to income tax on their pensions. Will the Minister, given his influence in Government, consider taking old age pensioners out of the tax net, although they may not be paying a great amount of tax at present? The constituent stated that the extra funds that are now available present an opportunity to the State to allow pensioners to enjoy their social side of life more fully and perhaps pay for some home help.

I understand the period of operation of the national fuel scheme is between April and October and that claimants under the scheme are entitled to approximately €12.90 per week. To fill a 1,000 litre tank of kerosene or diesel costs approximately €500 to €530. The price of oil per barrel dropped last week but the effects of this will not be realised for some weeks at the petrol pump or in terms of delivery prices. The period of operation of the national fuel scheme should be extended to cover the full year because our climate is such that elderly people need heat all the year round. Most houses of retired people that I visit have solid fuel or other forms of heating. The Minister should consider this proposal.

It has also come to my attention that the difficulties associated with refuse collection impose a particular burden on elderly and retired people. Would it be possible to have a voucher scheme for pensioners to assist them in paying for refuse collection? There were exemptions for qualifying candidates when the councils were responsible for the collection of refuse, but these no longer apply.

On pensions generally, I welcome the fact that we have brought about increases over the years. They are very worthwhile. The former Minister for Finance, Deputy McCreevy, established the national pensions reserve fund, which currently stands at €10 billion. It is a great achievement for the State to have this money invested for people in the future. The first action of the Opposition parties, had they got into power after the general election in 2002, would have been to raid this fund, and this is one reason they did not get into power. The people felt there would be no security in the future if there were a coalition comprising the Labour Party, Fine Gael and the Green Party. We decided not to raid it although it was not politically beneficial for us to do so. It shows great commitment and maturity on the part of the Government to retain it and refrain from drawing it down, even if only to spend on infrastructure programmes.

I note the Minister's approach to the special savings incentive account scheme. He has been forthright concerning exemptions in this regard. People have been putting money into special savings accounts and are looking forward to their being able to reap the benefits without affecting their pension rights.

Let us consider another issue that has come to my attention, and I am sure to the attention of the Minister given that he is a very active constituency worker. A widow of a county council worker in Roscommon told me that her husband informed her that she would be fine financially after his death, that he had signed up for the council pension. He was very happy to tell her this but unfortunately he never signed the dotted line pertaining to the widow's contribution. Local authorities gave an option to employees to make such a contribution. The issue does not concern the Minister's Department directly as it is the responsibility of the Minister for the Environment, Heritage and Local Government. One should not give anyone an option to deduct money to look after his widow in the future, but this is what happened. The widow was disappointed and also disappointed in her late husband, who did make a widow's contribution.

The Government, in its wisdom, should exempt widows such as this constituent, whose husband worked for approximately 40 years for the local authority. The number of people in her position is not great. The reasons widows' husbands may not have paid a widow's contribution are varied. Perhaps they just forgot about it. They should not have been given the option. A contribution should have been deducted from the fund to ensure the widow was looked after. I will raise the matter with the Minister for the Environment, Heritage and Local Government, Deputy Roche, who may be in a position to bring about a change in the system.

I thank the Leader for allowing the debate to take place. It is timely given that the Estimates are being published today. I am confident the Minister has received a healthy increase in his allocation for 2005. I know he will deal with the anomalies raised whereby a widow caring for a disabled person does not receive an increase because there is no carer's allowance for such a person. It would be worthwhile providing an increase for these people.

I wish the Minister, Deputy Brennan, every success in his new portfolio. I know he will endeavour to do an excellent job and will make a great contribution throughout the country. Given his experience as general secretary of the largest political party in Ireland, the Minister knows every town and village in the country. He knows the people for whom he is caring deserve the best and will ensure they receive it.