Brendan Howlin (Wexford, Labour) | Oireachtas source

There is no longer an enormous gap between the pensions enjoyed by some who walked away and those who are currently serving as their successors, which is interesting. I felt we needed to ask for an additional contribution from those who have decent pensions. I am formally advised that there are three constraints in cutting these pensions. It has been determined by the courts that pensions are a preserved property right under the Constitution. The criteria for reducing pensions at the top is that a financial emergency obtains - I think we can sustain that argument - and that the reduction would make a significant contribution to resolving that emergency. The take would not be sufficiently significant to justify targeting a tiny number of people. Finally, it must not be discriminatory in targeting a tiny group of people.

We needed a reasonable spread if we were to do this in a fair and proportionate way. If we are considering pay reductions for those currently at work and earning €65,000, half of that is €32,500. That is a high pension. Only 22% of public servants have pensions of that amount or greater. These are the people I have asked to make a contribution. The contribution is small at the margin, at 2%, and nobody will be asked to go below €32,500. The rate ratchets up to an additional contribution of 10% at the top, which is reasonable. I introduced an additional take of 20% for those earning more than €100,000 in the Financial Emergency Measures in the Public Interest Act 2011. The deduction will be brought to 28% with this Bill, which is sustainable within the confines of the Constitution. It is reasonable to ask that such a contribution be made.

Clearly pensioners were not directly involved in the talks. I did not meet with them or anybody else until the talks concluded, other than some of the principals of the Irish Congress of Trade Unions. I did not meet individual groups, such as gardaí, but I wanted to meet the pensioners once the talks had concluded. My officials had a long meeting with them first and I subsequently met them on Monday to go through the Bill and explain my reasoning. I will not suggest they were happy but I think they understood the reasons. An unanswerable case can be made for an alliance to be formalised so that we are not dealing with associations of retired gardaí, nurses and civil servants separately. I think they will coalesce into a formal alliance and I have guaranteed that I will deal with them as Minister if that happens not only in respect of pension matters but also about how this can be unwound. I have written formally to them to give that commitment.