Liam Twomey (Fine Gael)

Whenever Ministers want to give everyone a big hug so that we will all work together on an issue, one knows it must be incredibly difficult or the Government is afraid to deal with it because it does not want to take the blame for what is happening. The only people guaranteed to be on a yacht in the Caribbean are the fund managers to whom Senator Ross referred and Ministers. Last week, legislation was rushed through the House to ensure a former Minister will enjoy the perks of the Caribbean. Sadly, the same speed has not been demonstrated by the Government in looking after a sizeable proportion of our people who do not have pensions or whose pensions are inadequate.

The National Pensions Reserve Fund is in place to cover the Government's liability on public sector and Civil Service pensions in the years to come. A contribution of 1% of gross domestic product annually will reduce the cost of those pensions to future generations and it is good to plan for them now, otherwise the entire apparatus of State could collapse in 20 years if allowance is not made for this. The pensions paid to civil and public servants, including Oireachtas Members, are defined benefits. We are all guaranteed good pensions which will be index linked. Private sector workers are affected by the shortfall in pension cover but they are paying our pensions now because the contribution from the NPRF to our pensions is paid by every private sector worker who receives nothing in return. The people who will be in trouble in the future work in the private sector and are not making adequate pension provision.

The Green Paper is a little late in the day. If the Government moved to look after private sector workers with the same speed it did when dealing with its own pensions, this debate would not be the subject of a lackadaisical stroll through the Dáil and Seanad. We are only having a discussion because the Government is not concerned about coming up with solutions. Private sector workers will be in trouble unless they are given a benefit and looked after. A total of 1 million people have no pension and we need something more than a Green Paper and a discussion lasting into 2008. The State is a decade behind and nobody should believe the Exchequer is protected because only 11% of the population require a pension currently.

A ratio of six workers per pensioner is bandied about and it is suggested that by 2030, when many of us will retire, that will reduce to two workers per pensioner. However, 20% of the workforce is engaged by the public and Civil Service, which is higher than in other European countries. Even though a smaller percentage of the population is aged over 65, a higher percentage of the workforce is employed in the public and Civil Service and they will receive defined pensions. As a result, the cost of pensions will increase down the line and the former Minister for Finance, Charlie McCreevy, recognised in 2003 that this would be a major burden on the State by 2025 unless something urgent was done. This was also acknowledged by Opposition Members at the time but we do not believe there is time to stroll through the park on this issue.

It is time to look after people in the private sector who do not have pensions and to ensure provision is made for them or mechanisms are put in place to protect them. I have a private pension which I have paid into since 1999. My contributions equal the monetary value of the pension and, therefore, I will gain nothing even after eight years. A significant number of people face the same scenario but they are not stupid. The Government should not talk to them about mandatory pensions. Senator Hanafin typified the arrogance and ignorance of Government Members. It is easy to lecture people about mandatory private pensions when one's own pension is so bloody well protected.

When a worker is forced to invest his pension in a fund, however, he or she is subject to a 1.5% administration charge annually. The reason PRSAs do not work is because they involve a 3% set up charge and a 1.5% administration charge on the entire fund annually and not only the profit. Workers will not throw away their hard-earned money stupidly on the basis that somehow, somewhere somebody might make more money for them than they could make themselves. That is why they invest in property or stocks and shares. The reason the PRSA initiative did not work is the Government did not trust the people to make decisions on their own future. The Government could begin to treat them like adults and give them the opportunity to invest in their future and make the decisions themselves without tying them into institutions with vested interests.

The Opposition should not be lectured about agreeing with the Government. Fianna Fáil and the Progressive Democrats did nothing about this problem over the past decade and they will do nothing over the next three or four years. Having published the Green Paper, they should show a little balls and publish proposals they might implement so that the Opposition can agree or disagree. They should stop the silliness because our pensions are well protected and they are too good. That is why we are forgetting what is happening to the rest of the workforce.

The Minister for Social and Family Affairs lectured us earlier about agreeing with him but he will retire on a pension that is a multiple of the social welfare pension. Members on the Government side should not boast about the increase in that pension to €300 per week over the next five years. The current pension of €208 per week is a fraction of what the Minister's pension will be. It is time for him to be serious about what he is doing and to bring forward proposals we can genuinely debate. He should not try to hug the Opposition into agreeing with his proposals or mock us for causing the problem. The problem is on the Government's desk and it is time to deal with it urgently.