Seán Ryan (Dublin North, Labour)
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Question 84: To ask the Minister for Social and Family Affairs if his attention has been drawn to the recent OECD report, Society at a Glance, which shows that Irish people retire later than those of almost any other nationality, and that the elderly here are the most likely to be living in poverty and least likely to be receiving formal care, whether in their own homes or in nursing homes; his views on the findings of the report; the steps he intends to take arising from it; and if he will make a statement on the matter. [11854/05]

Paul Gogarty (Dublin Mid West, Green Party)
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Question 87: To ask the Minister for Social and Family Affairs if, he will outline the approach his Department is taking in tackling poverty among older persons; and if he will make a statement on the matter. [11810/05]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 84 and 87 together.

Since first taking office, the needs of older people have been a priority for this Government. We have sought, through significant increases in pensions and changes to other schemes, to improve the position of older people.

Since 1997, we have increased pensions by up to €80.26 per week or 81%. During the same period, the increase in the consumer price index was 30% while average earnings increased by 51%. We have also eased qualifying conditions so that more people now receive contributory pensions. The free schemes have also been made available to all those over 70 years of age regardless of their income or household composition. The Government has also substantially increased the level of funding for health and social services for older people. Between 1997 and 2004, the total additional funding allocated was approximately €287 million, and additional revenue funding of €15 million was announced for this year.

As Minister for Social and Family Affairs, I will continue to look for opportunities to make further improvements in the supports we provide for our older people and, in this regard, the House will be aware of our commitment to increase pensions to €200 per week by 2007.

Poverty measures are problematic. The report to which the Deputies refer measures the ratio of equivalised disposable income of people aged 65 and over to that of people aged 18 to 64. Ireland is at the bottom end of the income ratio, which ranges from about 90% to 59%. However, as the OECD acknowledges, household income is an imperfect measure of the well-being of older people and is likely to underestimate their economic resources and overestimate their poverty risks, especially in countries where home ownership among the elderly is higher. I should also point out that the figures in question do not encompass non-cash supports, such as the free schemes and the medical card, which can be a valuable addition to the income of many older people.

The report also acknowledges the difficulties in defining and measuring formal care services across OECD countries. Care should be taken when comparing a range of different formal care settings which are being funded in a variety of different ways.

With regard to retirement age, it is true that Ireland has one of the higher effective retirement ages in the OECD and in the EU. In this regard, however, an increase in workforce participation of older people is one of the more important measures identified at EU level as a means of ensuring the sustainability of pensions systems in the future. One of the main factors contributing to the projected problems for a pay as you go pensions system is a reduction in the available workforce in the years ahead. Accordingly, it is important to maximise the workforce participation of all sectors, including older people.

The EU has set a target of 50% for workforce participation by those aged 55 to 64 and is also seeking an increase in the effective retirement age. Ireland is close to achieving the participation targets and is well ahead of many of its neighbours with regard to effective retirement age. It is important, in my view, that we maintain this position in the years ahead.

The provision of formal care to older people in nursing homes and other types of residential care is the responsibility of my colleague, the Tánaiste and Minister for Health and Children. My officials and I have, however, been working closely with her and her officials on certain issues regarding future policy development in the long-term care area. A major study to examine the future financing of long-term care in Ireland was published in June 2003. A consultation process on the report was then undertaken by my Department.

A working group chaired by the Department of the Taoiseach and comprising senior officials from the Departments of Finance, Health and Children and Social and Family Affairs has been established. The objective of this group is to identify the policy options for a financially sustainable system of long-term care, taking account of the report, the views of the consultation that was undertaken on the report and a recent review of the nursing home subvention scheme. The group will report to the Tánaiste and Minister for Health and Children and me by mid-year. Following this process, there will be discussions with the relevant interest groups.

I am always prepared to consider changes to existing arrangements where these would be for the benefit of recipients and financially sustainable within the resources available to me. In this context, I will continue to review issues in relation to older people.