Martin Conway (Fine Gael) | Oireachtas source

I welcome the Minister to the House. As she is one of the star performers in Cabinet and is no shrinking violet by any stretch of the imagination, I have no doubt the future of pensions is in good hands. She will work diligently and determinedly to put together a template based on the recommendations of the OECD report referred to by Senator Paschal Mooney.

I agree with much of the commentary of Senator Mooney. It is interesting to reflect on the time of Charlie McCreevy and the concept of the National Pensions Reserve Fund. It is an awful shame they did not get more things right. If they had, perhaps we would be in a better position to fund pensions. It is important to acknowledge where good things were done and I am happy to do so. The OECD report provides a template of best practice and the ideal scenario. We must tailor that according to our needs. We must implement a timeframe according to our economic recovery and tailor it in a way that suits our population.

It is a positive development that the health of the nation has improved to such a degree that we are dealing with the problem. The idea that two adults will work to sustain one elderly person is why we invest in health services. That is due to the advent of modern technology and improvements in medicine. It leads us to the situation and is reflected internationally. With that in mind, it is important to plan in the long term. It is important to ensure the foundation is put in place during this Administration to ensure the problem is adequately dealt with.

The pension age will increase incrementally between now and 2022. That is reflective of an ageing population. It is important and critical that we get this right. It is not a party political issue but it is a political issue. It is not a political football because we are dealing with the future of every citizen in this country. We need cross-party and cross-political consensus as far as it is achievable to ensure an effective, proper structured framework is in place so that when people come of age and move into their late 60s and early 70s, they have the comfort and security of being financially independent during good healthy years.

A couple of other issues have also been referred to, including the scandalous behaviour of pension companies. This country has seen the devastation caused by the reckless and inadequately regulated banking industry. We need tighter regulation in terms of pensions. I commend the Minister for what she said in this regard. I have no doubt it will be dealt with adequately. The figures quoted by Senator Mooney, whereby €3,100 is lost per annum in the case of someone who saves €250 per week, is shocking and extremely worrying. It is the greed of the private sector, which led this country into the state we are in. It is the greed of right-wing economics. The idea of light touch regulation did not work, as clearly demonstrated throughout the world. Let us regulate it. If necessary, I have no problem with overregulation as it is protecting the future of our people. The notion of survival right-wing politics, philosophy and economics has totally failed throughout the whole world. It will not resolve the challenges we face. I was asked to speak on this topic at a late hour but I commend the Minister and I wish her well in an extremely important task for the future of our nation.