Séamus Brennan (Dublin South, Fianna Fail)

I thank Senator Terry for moving this amendment again. While I do not have any difficulty with the concepts in these amendments I am seeking a fair balance between the consumer and the provider and a code of protection for the consumer informing the participants about charges and so on. All of these are covered in the various regulations about which I spoke on Committee Stage. The Director of Consumer Affairs is on the Pensions Board. There are requirements to inform people about charges and there are a host of regulations regarding the work and responsibilities of the Pensions Board. The objectives laid down in these amendments are well and truly covered.

I want to protect the consumer in the same way as every other person in this House. I will examine anything else that can be done to reassure consumers. I take the point that Senator Terry made about the €3 billion deficit in the pension fund in the top ten Irish plcs. That is an accountancy deficit and is not something that would be called on immediately. It is the result of the changes in bonds and yields from bonds. If one was to react and demand immediate compliance and full cover, then matters could be made much worse. It is better to get them into shape than drive them out of business.

However, I have an open mind on this issue. I have the same objective as the Senators, which is to protect the consumers and the pensioners. I am advised by the Pensions Board, which is required by statute to advise me, that the best way to do it is to give the extra number of years to monitor the pension funds on a monthly basis. They can gradually be brought to a situation where we have full funding.

I brought forward, from 2006 to the summer of 2005, the report of the investigation of the Pensions Board into the adequacy and the coverage of pensions. The board will consider the funding standard and how we can improve matters in that area. I do not wish to be blasé about this and state that there is no cause for concern. There are issues surrounding pension funds, such as accountancy deficits and funding standards which have to be addressed. There is a movement from defined benefit to defined contribution, as well as changes regarding the risk which is transferred to the employee. All of these changes are ongoing and I am well aware of them.

The funding standard is formally monitored on an annual basis. Companies would receive regular information from the funds as to how they are meeting the funding standards. They are formally required to make an annual assessment of the measure against the funding standard that is required. I support the direction in which the Senator is going with regard to these amendments but I am arguing that currently, by and large, they are taken care of.

However, that is not to say that there are not other issues concerning further consumer protection. The best protection for consumers is to ensure that their funds are fully funded and adequate to meet requirements. The Pensions Board is working on that issue and monitoring it daily for me. I will continue to examine what more I can do to ensure those funds are fully able to meet its requirements.