John Whelan (Labour) | Oireachtas source

I welcome the Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte. I appreciate his taking time from a busy schedule to respond to the issue I am raising. I am taking the opportunity to seek clarification and reassurance on behalf of ESB workers in the context of the recent revelation of a significant shortfall in that company's pension fund.

I have been contacted on a daily basis over the past number of weeks by ESB workers throughout Laois, Offaly, Kildare and the midlands. The ESB is a strong, well-respected and valued employer. Generations of families have been employed in the ESB throughout the midlands over the years. There is unnerving news that the ESB pension scheme is in deficit to the tune of between €1.6 billion and €1.7 billion. It is difficult to see how it can occur in a highly successful and profitable semi-State company with international status. It pays substantial annual dividends to the State on behalf of the taxpayer.

An area of concern to the workers is that the management has unilaterally changed the status of the pension scheme from a defined benefit scheme to a defined contribution scheme. I fell victim to the same thing when I was employed in the newspaper industry. That also rings alarm bells for workers looking forward to retirement in years ahead and the significant impact it will have on their entitlements. Due to the financial flux in the sector and the industry over the past number of years, Waterford Crystal workers were left high and dry. It is not a parallel but it rings alarm bells. In companies in the private sector, pension schemes are seeking a writedown from the Pensions Board in respect of exposure and what is due to workers. I hope the Minister can bring clarity and reassurance to the area, particularly because the ESB pension scheme is the largest funded pension scheme in the country, with liabilities in the region of €5 billion. This is a worrying signal to all workers in the public, private and semi-State sectors if they cannot rely on, and trust, a pension scheme in a gilt-edged company such as the ESB. What hope do workers in other companies have when they do the prudent thing and contribute on a weekly basis to their pension for retirement?