Joan Burton (Dublin West, Labour)

Essentially, because of the deficit in the social insurance fund and, more particularly, because we have more older people who thankfully are living longer, all Governments of all parties, dating back to the early 1990s, have sought to have people make increased levels of contributions to contributory pensions in the social insurance system. This is in order that when they become older, there will be enough money in place to provide for their pensions. I do not believe any party in either House of the Oireachtas has disagreed with this principle. This is a long-term measure which first appeared in legislation in 1997.

There was a reference to people who might have left the workforce to become involved in caring duties in the home. Members should also bear in mind that we have built up, again with all-party agreement, a comprehensive system of carer's and household credits for those in the home. If they are not working, they can apply for credits. I reiterate that if someone for some reason is working in the home, he or she should always be careful to apply for credits because, together with paid contributions such as those under discussion, ultimately, they builds their entitlement to the maximum State contributory pension. The Government is introducing this clause in the legislation to ensure the existing cohort of pensioners currently in receipt of the State pension who have less than 520 paid contributions are protected.

In essence, the Government will move to the new structure next April, for which, as I stated, the framework has been in train since 1997. It will mean, for instance, to revert to Senator Brian Ó Domhnaill's point, that people who have built a full set of contributions will receive slightly more than those with fewer contributions. However, this has always been part of the structure towards which the entire Oireachtas has been moving. Members should bear in mind that in our system someone who has no contributions and lacks means may apply for a non-contributory pension. Ireland's system, compared with many others, is relatively generous and, thankfully, the level for both contributory and non-contributory pensions is relatively high. While I understand the sentiments expressed by many Senators to the effect they would wish to see it higher, so would I, but the Government does not have the financial means to provide for this. Many have even been calling for cuts to the basic level of pensions and I have been happy to state I have been able to resist this in respect of both contributory and non-contributory pensions. However, I understand this does not go as far as many Members of the House might wish.