Paddy Burke (Fine Gael) | Oireachtas source

I welcome both the Minister of State to the House and this legislation. As we all know, going back to 2009, the FEMPI legislation was brought in for various reasons. Basically, the economy fell asunder and something had to be done. I compliment this Government and the two previous Governments on the enormous work they did to bring our public finances back to a position where we are currently able to pay our way. The economy collapsed and the IMF was brought into the country. Everyone's pay was either reduced or taxed through the universal social charge or otherwise. Many Bills were brought to this House over the years. For instance, judges' pay was reduced, which was unthinkable at one stage. It was said it could not be touched, but it had to be done for the sake of the economy. Every sector of society, including the public service, suffered greatly over a ten-year period. As I said, there were a number of Acts. We enacted FEMPI legislation in 2009, 2010, 2013 and 2015 and now this Bill shows the path towards full restoration of public pay until 2021.I am delighted this legislation is being brought in. It contains the final roadmap as to how everything will be restored. Many people made great sacrifices. People working in the public service had acquired large mortgages and cars and had to pay for education for children. When they saw the reductions in their pay on numerous occasions, it was very hard for them to take it. I am delighted that we have a roadmap that will restore pay and pensions in full by 2021.

Senator McDowell outlined how good the public service pension is at 50% of a person's wages. However, there have been changes to that as well. Heretofore, many public servants could have received a pension after a certain number of years, whether it was when they reached the age of 50, 60 or 65. In future, the vast majority of people will not get a pension until they are 66, 67, 68 or even 70. There have been many changes to pensions and there will be further changes to come. The public service pensions we saw in the past will not be as generous in future. While people in high office will finish on a certain salary, their pensions will be aggregated over their time in the public service. That is a big change as well.

There is also a big change in when politicians get their pensions. Previously, Members of the Oireachtas could get a pension at 50, provided they had the required service and made pension payments. However, Members of the Houses of the Oireachtas will not now qualify for a pension until they are 66, 67, 68 and probably up to 70 in the not too distant future. We all know the vulnerability in regard to politics. Members are in the Oireachtas for an average of 12 years. It is a very vulnerable business for anybody to be getting into. The time spent here is quite short and one might have to wait until one reaches 67, 68 or 70 of age for a pension. One could be a Member of the House for a number of years and then be out on one's ear at 50 or 60 years of age, at which point I do not know what one would do. One would probably be unemployable by the time one leaves Leinster House.

I welcome the legislation. There are three parts to it, as the Minister of State, Deputy O'Donovan, said. It provides the roadmap to the full restoration. It refers to the public service stability agreement, PSSA and the Public Service Pay Commission. I warmly welcome this Bill. I commend the people who faced hardship over the past ten years and who can finally see where they are going for the future.