Seanad debates

Tuesday, 6 December 2016

Social Welfare Bill 2016: Committee Stage

 

2:30 pm

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

I would like to speak in favour of this amendment, particularly in so far as it relates to the homemaker scheme. The discussion on amendment No. 4, in my name, reflected the need for the first, second and third tiers of our pension system to be repaired in the long term. This amendment relates to a more urgent issue. The Minister has acknowledged that the current position is unequal. Everybody knows it is unfair that a person who has worked for a greater number of years can be entitled to less, but that is basically where we are.

I am aware that the policy for some years now has been to move towards a total contributions approach by 2020, but problems have arisen while we have been waiting for that to happen. I might be wrong, but I understand this has been an issue since 2004 or 2006. I know the National Women's Council Of Ireland made a submission at that time. We have been waiting for the total contributions approach for some time. We cannot simply wait this issue out for another four years.

This urgent and direct issue of clear inequality can be repaired. It is not appropriate that we would expect people to wait for the next four years for the total contributions approach, or some other system like a supplementary retirement savings scheme, to be put in place and for systematic repairs to be made to the first tier. As a result of the ridiculous anomaly that exists at present, people are not allowed to average the actual contributions they have made over their lives in a way that would be appropriate. Under the situation we are leaving in place, just a small number of years can be disregarded. The wider question of moving from a disregard to a credit is part of the bigger picture that is the total contribution debate.

I urge the Minister to tell us whether he expects that by the time he comes before us in the aftermath of budget 2018, he will have looked into the anomaly in the homemaker scheme that has been highlighted by Senator Ardagh. I know he has indicated he wants to look at this anomaly, but does he expect to be in a position to bring forward proposals to address it in budget 2018, rather than waiting until 2020? I think the shorter timeframe of three months suggested by Senator Ardagh is appropriate because this specific issue cannot wait and needs to be addressed promptly.

I know Deputy Shortall has highlighted issues with defined benefit schemes in light of the ongoing INM scandal. I reserve the right to return to this issue on Report Stage. I strongly support the amendment before the House.

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