David Cullinane (Sinn Fein)

I move amendment No. 8:

In page 25, subsection (1)(a), line 9, to delete "year for the pension, and" and substitute the following:

"year for the pension, that amounts to no more than €60,000, and".

This group of amendments seeks to cap public sector pensions at €60,000. The majority of retired public sector workers - perhaps the Minister has the exact figure - are in receipt of an average annual pension of €30,000, yet we have a situation where former Secretaries General, Taoisigh, Ministers and other public servants receive annual pensions in excess of €100,000. This is simply unacceptable. It was unacceptable in the good times and it is certainly unacceptable now, given the current economic situation. My party is of the view that some in the upper echelons of the public sector have been over-paid and some of their entitlements, such as pensions, have been far too generous, in comparison with those on the lower scales. This is one of the unfortunate realities that has confronted all of us in public life in recent years.

Some economic commentators and economists have tried to drive a wedge between public sector workers and private sector workers. They have made the argument that all public servants are on Rolls Royce pensions but the reality is far removed from that. The Minister will accept that the vast majority of public sector workers do not have anything like Rolls Royce pensions. Someone on an average wage of €30,000 or €40,000 has a small pension to which he or she pays in. People should be mindful that public servants make a contribution to their pension fund. Moreover, the pension levy was introduced which means public servants make a significant contribution to their pensions.

Sinn Féin believes there should be a cap on the basis of the need for equality just as tax allowances, available to people in order that they can invest in their pension pots, are capped. This would bring about a more proportionate and fair way of ensuring equity when people avail of taxpayers' money to invest in their pension pots. Many high earners in the private sector can put vast amounts of their salaries into pensions and avail of tax relief at the top rate of 41%. While there is a cap, we believe it is far too high. We have taken a consistent approach by seeking to change the position of private pension contributions and public payments. I do not believe that anyone who works for the State should get a pension in excess of €60,000 per year. That is approximately €1,100 per week, a vast amount of money for anyone to earn.

I am unsure how many public servants would be affected by this proposal. It may only be a small amount of people and, if so, then it should be no big deal for the Minister to accept it. We are not calling for this provision to be made retrospectively. It should be for new entrants. We take the view that, starting from now, anyone who retires should not get a pension above or beyond €60,000. We believe this is reasonable. This is not being proposed because we are trying to be in any way selfish towards people who are in the upper echelons of the public service and who are well paid. We believe the Government should be fair and proportionate and realise the position of the vast majority of working people, especially in the private sector.

As the Minister is aware, many of these people have seen their private pension pots decrease dramatically because of what occurred in the economy generally and because of investments in pension funds. Many people have been left without their pensions. Waterford Crystal is one example but there are others. I met several workers from Diageo recently. Almost 300 workers have lost their jobs between the plants in Dundalk and Kilkenny. Given the problems with the pension pot they will not get their proper entitlements and the pot is essentially insolvent.

On the one hand people in the private sector, often low and middle income workers, have small pensions and in many cases they have seen their pension pots reduced dramatically. On the other hand they see some people at the top of the public service with what are gilt edged or gold plated Rolls Royce pensions. The perception among the public is that all public servants are on these pensions but this is not the case.

If there were a cap of €60,000 it would deal with the issue because there would be a fair, proportionate and reasonable cap in place. I call on the Minister to produce the figures if this €60,000 cap was to be applied. Does he have any idea how many would be affected? Do the Minister or his officials have the numbers of how many people would be affected?