Ivana Bacik (Independent)

Senator Byrne's stated opposition is on the basis of one provision, section 47. I listened carefully to what the Minister said on section 47, making the point that the enabling provision should not be used to create an expectation that it will be unilaterally implemented and that discussions will not be pre-empted in any way. The Minister has addressed the point made by Senator Byrne on the potential impact of the provision on negotiations under the Croke Park agreement. The Minister also made clear that any changes would not be implemented during the current agreement in accordance with the clarification. It is clear under the terms of section 47 that it cannot be implemented by ministerial order alone and it requires a positive vote in both Houses of the Oireachtas. I do not see why it is necessary to oppose a whole Bill, particularly on a complex matter and one that will implement comprehensive modernising reform of the public service and public service pensions, just for the sake of that point.

I welcome the ongoing public service reform taking place in the framework of the Croke Park agreement. The Government is committed to it and I am a strong personal defender of the agreement. It brought us great stability at a time when we needed it, a time of grave economic difficulty and at a time when we see a real impediment to economic recovery in the shape of depressed domestic consumer demand. It is important to ensure stability in the public sector and in public sector pay. We have seen industrial peace as a result and immense reform. There have been unwarranted attacks on public servants and unwarranted comparisons between the public and private sectors. It is undoubtedly the case that the public sector enjoys greater security of tenure, although many of those employed part time in the public service have seen their jobs go. It must be remembered that those working part time in the education sector have seen their jobs diminish or wither away. The recruitment freeze has meant public servants have worked harder and the reforms implemented ensure greater workloads for many people, and rightly so, at a time when they are facing reductions in pay, particularly due to the pension levy. There must be a balance. It is fair that public servants must take a share of the economic hit but it is not fair to criticise the public sector without acknowledging that point. It is important to express the view that the Government values public servants and is committed to providing good quality and decent pension entitlements, even when public service pension schemes are being reformed.

The key reform in the Bill is to create a new single pension scheme for new entrants to the public sector. I listened with great interest to the speech of Senator Quinn, as did the Minister, and some of his proposals are very interesting. I refer particularly to the idea of people gaining access to cash now on foot of additional voluntary contributions. There would be serious constitutional issues in Ireland about interfering retrospectively with established or preserved rights. That is why the Bill applies specifically to future entrants.

I am pleased to see the level of consultation and planning in the Bill. The Minister expressed clearly that this has had a long genesis and the provisions have been carefully prepared. Given the demographic projections, it must be carefully worked out. Senator Sheahan referred to the ticking timebomb of dependency ratios dropping from six to two by the middle of the century. It is a very happy event that we have longer life expectancy and people living and drawing pensions for decades after retirement. However, it requires a change in public policy. I am reminded of the saying that growing old sucks but is a lot better than the alternative. It is a good news story that people will be drawing pensions for much longer but there are implications for public policy. It justifies the increase in the pension age. We had a lively debate in this House about the merit of a mandatory retirement age. Other speakers touched on the point. At a hearing on the rights of older people in the Seanad Public Consultation Committee, interesting views were expressed on potentially having an open-ended retirement age. In the Bill, the Minister has set out 70 as the maximum age and that the pension age will be increased in line with the State pension age. Senator Quinn refers to some people working well beyond that age. In the Judiciary, the age for retirement for senior judicial office holders is 72. I presume the Bill will not have an impact on that. Having examined sections 13 and 22, I am not clear whether that will still be the case after the Bill is enacted. I have had colleagues in the Law Library, for example, who continued to work into their 90s. There is an important debate to be had regarding the merits of a mandatory retirement age. However, I take the Minister's point about the importance of people being able to plan ahead with some degree of certainty.

The Minister set out clearly and comprehensively the detailed provisions on calculations and the linkage to the consumer price index. The provision that there will be no reduction where there is deflation seems fair to me. I also welcome the provision that revisions of the rate of contribution will require a positive resolution of both Houses of the Oireachtas rather then merely being subject to ministerial order. I have a particular interest in the provisions in sections 33 and 34 on pensions for surviving spouses or civil partners. It is important to note the progress we have made such that civil partners are now, just like spouses, eligible to succeed to pensions. However, I am aware of certain schemes in the public sector, known colloquially and rather pejoratively as anti-gold-digger schemes, under the terms of which a marriage or civil partnership must take place before a certain age, usually 60, if a spouse or partner is to be eligible to succeed to the pension. Will this Bill have any impact on those schemes?

The legislation includes very sensible measures in regard to abatement and aggregation. Indeed, one might well ask why these provisions are not already in place. Will the Minister confirm that it will still be possible to top up public service pensions through additional voluntary contributions? In regard to the provisions regarding aggregation, in Part 4, I am surprised at the Minister's observation that they will impact a large number of people. Senator Tom Sheahan referred to the former Fianna Fáil Ministers in respect of whom people were greatly angered to see such large lump sums being given. Will the Minister indicate the numbers affected by the provisions regarding pensions aggregation?

I thank the Minister for his comprehensive explanation of the provisions of the Bill. Apart form the stability and certainty they will provide for public servants, they will also lead to substantial savings for the State by the middle of the century. That may seem a long way off, but action must be taken now to ensure it is achieved.