Seanad debates

Tuesday, 13 November 2007

2:30 pm

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael)

I ask the Leader to contact the Ministers for Social and Family Affairs and Finance and arrange a debate on the following matter. Some 40,000 people receive non-contributory pensions in Ireland, under a means tested process. Up to 30,000 of these are women who were forced out of the workplace because of the marriage ban. For reasons outside their control they do not have enough credits to receive the contributory pension. Many of those concerned are small farmers who would not show up on a means test as ineligible.

The cost of administering the means test is greater than or equal to any saving. The bulk of people are eligible for the non-contributory pension and much more. There is a process of inspection and supervision, with a battery of inspectors, for the sake of catching a few people who are marginally above the limit. This costs the State a colossal amount of money, more than is saved. I would like to know that figure and whether a net saving is made. I suspect the contrary is the case.

It is unfair on those who, through no fault of their own, do not have sufficient PRSI contributions or could not afford PRSI contributions. Most people have either private or PRSI pensions. The numbers at issue are, therefore, quite small. There is a need for immediate reform in this area. Instigating that reform is one way the Oireachtas could show that it is compassionate and relevant. The situation is bizarre.

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