Joan Burton (Dublin West, Labour)
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Question 407: To ask the Minister for Social and Family Affairs if his attention has been drawn to the structure of the construction industry pension scheme; if this would be a suitable prototype for the introduction of a national mandatory pension scheme; and if he will make a statement on the matter. [31495/06]

Joan Burton (Dublin West, Labour)
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Question 408: To ask the Minister for Social and Family Affairs if his attention has been drawn to the low level of pension provision among the category of self-employed construction workers operating within the relevant contracts tax scheme; if there are proposals to address this through the RCT mechanism; and if he will make a statement on the matter. [31496/06]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 407 and 408 together.

The Construction Federation Operatives Pensions Scheme (CFOPS) operates as a Registered Employment Agreement under the Industrial Relations Acts. There is a statutory obligation on employers to register eligible employees in the scheme and to pay the necessary contributions.

In 2005 Mercer Human Resource Consulting carried out a review of the scheme and found that 80% of the estimated 80,000 eligible employees in the construction industry are covered by the scheme. However, the report does highlight the fact that there is a very high level of workers in the industry classed as self-employed.

As the House will be aware, the question of pensions coverage featured prominently in the negotiations on Towards 2016. As part of the final agreement the Government is committed to publishing a Green Paper on pensions outlining the major policy choices, the challenges in this area and the views of the social partners. It is intended to publish this within months and there will then be a consultation process. The Government is committed to responding to the consultations on foot of the paper's publication by developing a framework for comprehensively addressing the pensions agenda over the long-term.

The appropriateness of introducing a mandatory system of pensions provision, as well as the different approaches available to achieve this, will be considered as part of this process. The two reports completed by the Pensions Board in the last 12 months – The National Pensions Review and their report on mandatory pensions, Special Savings for Retirement – will be major inputs to the Green Paper.

As already indicated, there is a high level of self-employment in the building industry and this places those involved outside the terms of the registered employment agreement. However, a Labour Court decision of December 2005 has implications for the interpretation of the registered employment in so far as self employment is concerned. That said, revenue rules in relation to occupational pensions preclude self-employed persons from contributing to an employer sponsored scheme. Given the restrictions which apply at present, the most appropriate way of addressing the pension needs of those in the building industry who are registered as self employed is being considered in consultation with the revenue and other interested parties.