Feargal Quinn (Independent)

I welcome the Minister and the opportunity to debate this issue. It is not very long since it was debated in the House. I have no problem congratulating the Government on its foresight in setting up the National Pensions Reserve Fund and congratulating those responsible for its good results. However, as we congratulate ourselves on this success, there is a real danger that we will lose sight of the wider picture. The National Pensions Reserve Fund cannot and will never provide a pension for everyone in the country who needs one.

Some months ago, the Minister for Social and Family Affairs, Deputy Brennan, had the courage to fly a kite in the House by suggesting the time may have come to make it compulsory for every employee to provide for his or her own pension. This kite was promptly shot down, which I was sorry to see. When I spoke on the conclusion of the Bill in question, I made an effort to determine whether we could patch up the kite so it would fly again, and today I would like to make another effort to keep it in the air.

Senator Cox referred to the difficulty of making pensions compulsory and to the dangers associated with our competitiveness. I understand her point but believe people will never obtain pension cover voluntarily. Young people will not provide for their pensions until they have to do so. The only way to solve the pension problem we face is to make it compulsory for everybody at work to contribute to his or her own pension. One could say we do so at present by paying PRSI, which may be correct, but if people are to have decent pensions to provide for themselves in their retirement, they must pay out more than they do at present. If they expect that some future Government will play fairy godmother for them on this question, they are incorrect. We have more than enough experience of the voluntary approach to know it simply will not work.

I know the difficulties the Minister will face and that addressing them will not be easy. If people put aside money for pensions throughout their working careers, they will make it possible to get a decent pension at a cost that is reasonable. This will not happen if they wait until they are in their 40s.

A recent survey, conducted by the Pensions Board since I last spoke on this matter, indicated that two thirds of respondents said it should be compulsory to provide for one's pension. Nearly half said they would be willing to pay PRSI at a higher rate to achieve this. What people are saying has not been heard before. The kite of mandatory pension contributions is still in the air. The next step is up to the Government and I hope it will listen to what the people are saying on this very important matter. While we usually dislike things that are compulsory, evidence now suggests that a majority of people want to be compelled in the case of pension provision.