Martin Mansergh (Fianna Fail)

It is interesting how thinking has changed on this. We were not correct then but we have the correct attitude now. At that time it was easy to make that conclusion because payments were so small that even if one increased them they would not make a considerable difference.

The early child care supplement is welcome and it is a matter that wracked many Civil Service, advisory and ministerial brains in the late 1990s. While no one believes this is the complete solution, it is accepted as a foundation to be built upon when we have resources. The child care supplement has an immediate effect on child poverty and makes a major improvement to families with small children. Realism has finally kicked in regarding home child minding. The principle is that everybody must pay tax, irrespective of how they earn income, but pragmatism suggests we should encourage home child minding unless it is undertaken on an industrial scale, in which case moneys accruing from it must be brought within the tax system. Applying minimal PRSI payments to this work should also be welcomed.

Much discussion has taken place on pensions. Governments since 1997 deserve credit for considering the matter of pensions before it became a major crisis. We have examined the situation in continental Europe, where pensions have acquired a vice-like grip on large, continental economies. The Government has taken preventive action such as the National Pension Reserve Fund and the Minister's encouragement of private pensions. This is not entirely unproblematic as people have mixed experiences of private pension funds and there have been many cases, across various places of employment, of shortfalls in contributions where set benefits should be provided. If Aer Lingus is privatised a certain amount of scrambling may take place to make up the gap between contributions and benefits.

I am not in favour of compulsion as that would effectively raise the tax or PRSI rate. That would send out all sorts of signals and we would have mixed benefits. I would be willing to support anything short of that.

It has always been frustrating that after budget announcements, particularly pension increases, the local authority raises rents. Given that there is little co-ordination on that, people do not get all the net benefit they may feel they should. I echo the point by another speaker on the value of housing aid for the elderly. It would make a significant difference to quality of life.

One must query the compulsory retirement of gardaí at the age of 55. Although this is not directly the Minister's responsibility it was raised on the Order of Business here. One could quickly increase Garda numbers by making that retirement age voluntary. I echo what has been said about missionaries. I have received a representation that the system has been tightened against them. They were formerly able to claim a social welfare pension for the duration of visits home. They are like public servants or diplomats who go abroad and work for the State as they work on behalf of orders based in Ireland. The phrase "domicile" has gone out of fashion but used to be an important part of the tax benefits system and the Minister might examine this issue. Many councillors do a full-time job and should be entitled to at least a modest pension like anybody else. I commend the Minister on his work and on this Bill in particular.