Phil Prendergast (Labour)

As spokesperson for older people I welcome the opportunity to take part in this debate. I welcome the Minister for Social and Family Affairs, Deputy Cullen, to the House. I greatly acknowledge the major contribution older people have made to our economic success and continued prosperity. We have an ageing population which, I am glad to say, is living longer and in a healthier condition than was the case previously.

A number of years ago, when I was on the national executive of the Irish Nurses Organisation we profiled the ages of nurses as part of an assessment of the future needs of nursing. It was not good because we discovered that more than two thirds were over 40 years old. Through the census we will know what the future needs of society will be.

I welcome this Private Members' motion. The Green Paper goes some distance towards meeting future pension requirements and will excite debate among many segments of the population, such as at meetings of the ICA and widows' associations. I concur with previous speakers who recounted how when we were canvassing we met people who were cold, wearing extra clothing and fearful of putting on heat. They were worried about the cost of living meeting their needs. The Mercer actuarial assessment of the social insurance fund, which was published last month, shows that current PRSI contributions — the money going into the social insurance fund — are running slightly ahead of expenditure and payments. However, in just three years' time a deficit will begin to emerge. The Mercer report is based on the existing PRSI rates and the current entitlements in terms of payments. It does not take into account the Government commitment to increase the pension to €300 per week or the promise to cut PRSI contributions for employees and the self-employed. The cost of the PRSI cuts promised would be €645 million per year and the full cost of increasing the pension would be €2.019 billion. If both were to proceed, the social insurance would be plunged into insolvency, which might lead to increases in taxation.

I welcome the opportunity to have this debate and I look forward to the Minister's response. The Green Paper is a step forward and I would like to think that in our term it will be progressive, forward thinking and positive.