Written answers

Tuesday, 24 May 2005

Department of Social and Family Affairs

Pension Provisions

9:00 pm

Photo of Gerard MurphyGerard Murphy (Cork North West, Fine Gael)
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Question 60: To ask the Minister for Social and Family Affairs the legislative provision by which he can ensure that workers in the construction industry receive their pension entitlements; and if he will make a statement on the matter. [17210/05]

Photo of Gerard MurphyGerard Murphy (Cork North West, Fine Gael)
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Question 68: To ask the Minister for Social and Family Affairs the outcome of his meeting with workers in the construction industry about their pension entitlements; the steps he has taken or intends to take; and if he will make a statement on the matter. [17209/05]

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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Question 117: To ask the Minister for Social and Family Affairs if he will report on his recent meeting with SIPTU representatives concerning the large scale abuses of the construction industry pension scheme; if his attention has been drawn to the fact that up to 50% of building workers are not covered by the scheme due to the failure of certain employers to make compulsory contributions; the plans he has to address this issue; and if he will make a statement on the matter. [17112/05]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 60, 68 and 117 together.

The construction federation operatives pension scheme is constituted as a registered employment agreement under the Industrial Relations Act 1946. The agreement was put in place in 1969 and it requires employers in the industry to provide specific pension benefits for their direct employees. Responsibility for various aspects of the scheme is divided between a number of agencies, including the Department of Enterprise, Trade and Employment, the Labour Court, the construction industry monitoring agency and the Pensions Board.

The issues associated with this scheme are many and complex. The SIPTU representatives, at my recent meeting with them, reported a high level of non-compliance and, in this regard, anyone familiar with the particular scheme will accept that there are serious problems to be addressed. Employers are not registering for the scheme; where they are registered, in many cases, they are not paying contributions for all their employees and, in some cases, deductions are being made and are not being remitted to the scheme trustees. With regard to the latter, failure to remit deducted contributions is an offence under the Pensions Act and the Pensions Board investigates any cases brought to its attention.

My Department and the Pensions Board are aware of the problems with the scheme and, while many of the problems are not within its remit, the Pensions Board has facilitated an examination of the situation by Mercer Human Resource Consultants. The brief for this exercise covers, among other things, identifying the areas of non-compliance and making recommendations on methods of addressing the problems which are likely to be successful in achieving the scheme's objective. I understand that the Mercer report will be completed in July and it will be examined in detail thereafter by all concerned with a view to implementation, as appropriate. SIPTU has put forward proposals on the compulsory deduction of contributions and these will be considered in the context of the review.

I am firmly of the view that only contractors that are fully compliant on their pensions and benefits obligations should be awarded public sector contracts. Ideally, I would like an arrangement, such as the tax clearance requirement, to be put in place to cover pensions and benefits. I intend to bring this issue to the attention of my Cabinet colleagues shortly.

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