Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

With the agreement of the Acting Chairman, I will conclude within three minutes. I will undertake to address on Committee and Report Stages any issue I do not address today.

Probably the most important issue that has been raised on many occasions by Members concerns pensions. The Government has a duty to plan for the best outcome but also to prepare for the worst, if the worst is to happen. In this legislation, I want to prepare for a solution and have the legislative tools in place to make it a reality. I also need to prepare for the possibility that a solution may not be found.

Unfortunately, what has happened to the IASS is not dissimilar to what happened with many other schemes. The amount of money put into it over the years by the employees and former employees in the companies was not enough to match the benefits expected or promised. Therefore, the only solution is a combination of the companies putting in more money and the members and pensioners accepting reduced benefits. It is always worth pointing out that in a case such as this it will not be good enough just to have the support of the staff of the airport. Any money that is to be injected into the pension scheme by Aer Lingus, for example, would require a shareholder vote. Last week, the Government was on the losing side of a shareholder vote on a CEO's remuneration. Aer Lingus staff and former staff need to have regard to the fact that in order to get an agreement, it is not enough for them and the Government to agree, as they will also need the agreement of the shareholders, including, potentially, institutional shareholders and shareholders such as Ryanair. The penny may not have dropped in that regard but it does need to at some point.

AIB was mentioned. I understand it transferred €1.5 billion in assets - loans - into its pension fund rather than taxpayers' money. That is exactly what is being proposed as part of the solution for the aviation workers. I refer to the companies putting cash assets into the pension fund.

I understand what Members are saying in suggesting we might set aside section 32A. I have heard that argument and I understand that this is a sensitive time. The panel is meeting and we do not want to do anything that would undermine the possibility of a solution. However, in what position would staff and pensioners be left if the scheme were wound up and we had not prepared for a wind-up or break-up?

In the interests of those people, we should make provision for the possibility that the Pensions Authority will wind up the scheme. I will not be winding up the scheme. I do not have the authority, but the Pensions Authority does have the authority and there is a risk that it could do so. We need to prepare to protect people as much as we can should that happen.

I will conclude there. I have noted all the points made and I will address all of them on Committee and Report Stages.