Fidelma Healy Eames (Fine Gael)

I welcome the Minister to the House. He has been lauded for his enthusiasm and clarity, to which I would add my praise for his commitment, particularly his commitment to reform. I hope he continues to listen and take on board what people are saying, while maintaining that drive for reform.

I propose to focus in my contribution on the issues of access to one's personal pension, retirement age, increments and sick pay. In general, this Bill contains a number of changes that must be made and which are essential in the current context and in view of the need to reform. Right now there are six people working for each pensioner but if we did not make changes, we would have only two people working for each pensioner and that in itself would bankrupt the State.

The change to the retirement age for public servants from a minimum of 66 years to a maximum of 70 years is good and right. In 2004, the minimum retirement age increased from 60 years to 65 years for new entrants, so it is not just because of recessionary times that we are moving in this direction. I support the system of career averaging as a means of working out a fair pension to earn at the end of one's working life.

Regarding the lump sum, is the Minister intending to tax that at any point? Obviously, we would all prefer if the lump sum was not taxed but given that so many people have just retired from the public service and that the State is in incredible trouble, perhaps it should be considered.

There are a number of unfair aspects to the Bill. I do not agree with the exemptions in the scheme for Members of the Oireachtas and others, such as the Ombudsman, county registrars and Revenue appeal commissioners, to give just a few examples. I can see why an Oireachtas Member, if he or she reached 70 in the middle of his or her term, would be exempt but why should an Oireachtas Member who is 70 or over at the start of a new term not be requested to retire?