Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 49: To ask the Tánaiste and Minister for Enterprise, Trade and Employment, further to the commitment in the programme for Government to review the ways in which older persons can be encouraged, when they so wish, to extend their working lives without financial penalty, if she will bring forward legislation to remove the provisions which disqualify those over the age of 66 from the terms of the Redundancy Acts; and if she will make a statement on the matter. [17949/04]

Frank Fahey (Galway West, Fianna Fail)
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The commitment in the programme for Government was met by the 15% increase in the special income exemption limits for those aged over 65, resulting in an almost doubling of the limits since 1997.

The redundancy review group report of July 2002, which produced recommendations for the updating of statutory redundancy legislation, considered that increasing the upper age limit of 66 for redundancy qualification purposes would not be a priority in the short term if resources were scarce. It could be argued, therefore, that the age cap should remain unchanged to maintain consistency with the Unfair Dismissals Acts 1977 to 2001 and the Employment Equality Act 1998.

The group recognised, however, that the labour force is becoming older and that participation in the labour force by older people, if desired, should be facilitated. Accordingly, it was recommended that consideration be given in the medium term to removing the age cap or raising the age cap in conjunction with similar changes to unfair dismissals, equality and social and family legislation as recommended by the Equality Authority.

There are no plans at present to remove the upper age limit in respect of statutory redundancy. However, in the light of the evolution of age-related legislative provisions, it will be necessary to review the age-related provisions of the Redundancy Payments Acts. That will have to be done before making legislative proposals for submission to the Government.