John Paul Phelan (Fine Gael)

I remind the Minister of a meeting of the Oireachtas Joint Committee on Social and Family Affairs in November 2005 where Patrick Burke, then vice-chairperson of the Irish Association of Pension Funds, said:

There is cause for the Oireachtas and the State to support the defined benefit system. We have made some recommendations in that regard, which the joint committee will see in the material provided, one of which relates to the State annuity fund.

In response Liam Murphy, principal officer in the Department of Finance, said:

In administering this fund, the State is faced with the same factors as private sector providers, namely, demographic factors, longevity, interest rates and investment returns. There is no reason to suggest that the State could deliver any real cost reductions compared to private sector providers. The State would also be forced to establish a new administrative apparatus and pay for appropriate skills. As an official in the Department of Finance, I must state that there is a danger that the State annuity fund could end up putting a new and indeterminate liability on the Exchequer and general body of taxpayers.

I ask the Minister to outline what has changed since 2005. I stated that we have written off approximately €50 billion. We have given a €50 billion Government subsidy directly to those who have invested privately in pension provision.