Seanad debates

Wednesday, 8 October 2014

10:30 am

Photo of Darragh O'BrienDarragh O'Brien (Fianna Fail) | Oireachtas source

Everyone will agree that we are very proud of our Defence Forces and the force reserve company that has returned from a difficult mission in the Golan Heights. I am delighted that they have all returned safely. I commend the men and women of the reserve company on their bravery during their tour of duty over the past six months. While there will be only a short debate or statements, it is important that this be recognised. This is only one example, by the way, of how our Defence Forces and front-line services, including the Garda, have performed on United Nations peacekeeping duty in recent decades. This should focus the Government's mind on supporting our Defence Forces as much as possible. I welcome them back and I am glad everyone has returned safely. On behalf of my group, I commend them all on the bravery they showed during the tour of duty.

Several weeks ago we debated at length the State Airports (Shannon Group) Bill 2014. I reminded colleagues at the time that it was the first time any Government had moved to legislate for a private pension scheme, namely, the Irish Aviation Superannuation Scheme. I imagine all Members have received detailed correspondence from retired members of the scheme, whose group, the Retired Aviation Staff Association, does a fantastic job in representing them, as well as the deferred pensioners group. On the basis of what the Government has passed in the Parliament, they will have a loss to their potential pensions of between 48% and 55%.

I am keen to correct the record of the House. In fairness, the Tánaiste, Deputy Joan Burton, and many of the Government Senators on the other side of the House have been corresponding with people who got in contact with them about their livelihoods, their quality of life and the fact that their pensions are going to be halved under the Government's proposals. The Tánaiste and the Government are putting out the message that the expert panel engaged extensively, in particular, with the deferred members group, which comprises 5,000 people and their families. It did not. The expert panel set up by the Government did not engage extensively in any way, particularly in respect of the deferred pensioners. I know Senator Bacik has responded in a recent e-mail to Mr. John Murphy in this regard. She sent on a detailed response. I acknowledge the fact that Senator Bacik responded to him, but I call on her to go back and check the facts. That is not particularly a point against Senator Bacik but rather against the Government.

The Minister for Transport, Tourism and Sport will have to sign two commencement orders to tear asunder the scheme and these people's promised pension benefits. These people have worked for 35 or 36 years and had been expecting pensions. They paid into the scheme on a compulsory basis. On the basis of these proposals they will now have their pensions reduced by 50%. If that were to happen in this House there would be a furore. People would go crazy about any idea involving such massive reductions in pensions. We debated the matter at length at the time.

I call on the Tánaiste and Minister for Social Protection at this late stage to consider bringing forward amendments to reduce the level of reduction for deferred and retired members. Let us not forget that many of the retired members have no ability to earn additional pay. Many of these individuals are in their late 60s, 70s or 80s and have paid into this scheme for years. This is not a solution. Over the years and under successive Governments the scheme was used as a vehicle and an incentive for people to retire early. It is proven now that the scheme could not afford to take the hit it has taken. People have paid into the scheme for 30 or 35 years. This is the first time the Government has legislated to reduce benefits in a private pension scheme. In this regard, we need to know what the Tánaiste and the Government are doing.

I propose an amendment to the Order of Business to the effect that the Tánaiste and Minister for Social Protection should come to the House for one hour to explain whether she is open to or will move further amendments to the scheme under the social welfare Bill to reduce the savage level of reductions proposed by the Government. It is only reasonable that the Tánaiste come to the House and correct the record in respect of what her officials are telling her party members.

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