Jim Walsh (Fianna Fail)

I wish to sound a note of caution regarding the Minister's assertion that the post-retirement element of people's pension entitlements will attract a lower priority under this scheme. That is fine and no one would argue with what is proposed, especially in circumstances where there is deflation or extremely low inflation. However, some economists are predicting that following this serious recession, and as a result of the stimulus packages that have been put in place in the United States and elsewhere, there could be a period of significant inflation or even hyper-inflation. In the 1970s, people who retired on private sector pensions which did not take account of inflation discovered that the value of their pensions was quickly eroded because inflation rose to between 14% and 16%. Over a period of four or five years, the value of the pensions to which I refer fell by a half or two thirds. In the context of the change being introduced in the Bill, the Minister must take account of the example I have outlined and ensure that people are protected.