David Stanton (Cork East, Fine Gael)
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Question 373: To ask the Minister for Social and Family Affairs if he has satisfied himself with the present arrangements for the supervision of occupational pension schemes and analogous private pension schemes in view to the fact that the cost to the Exchequer in tax and PRSI foregone on pensions contributions is in excess of €3 billion per annum, the high levels of fees imposed by the industry, the appearance of potential conflicts of interest in the way that employees are steered into arrangements selected by employers, the failure of many pension funds to match the returns achieved by the stock markets generally, and the fact that hundreds of thousands of people are investing in pensions now at a time of relative economic prosperity but will be drawing their pension benefits at a time when the demographic situation will be vastly different leading to a significant possibility that the marginal tax rates they will face then could be significantly above the marginal rates of tax they face at present leading to increasing numbers investing in property outside Ireland as a hedge against the risks involved; and if he will make a statement on the matter. [42694/06]

Séamus Brennan (Dublin South, Fianna Fail)
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There is a comprehensive system of regulation in place through the Financial Regulator, The Pensions Board and the Pensions Ombudsman to deal with the various types of pension arrangements which are available and the different aspects of these products.

The Pensions Board itself is at present carrying out a review of its operations to see how it might perform its role more effectively in the current pensions environment. Broadly, I understand that the Board plans to take a more pro-active approach to the supervision of schemes and PRSAs, in line with international best practice and EU requirements and the Department would support such an approach. The Board will shortly present its proposals in this regard and the associated requirement for additional resources to the Department and these will then be considered in detail in conjunction with the Department of Finance.

The trustees of a pension scheme have a duty under the Pensions Act to manage the scheme in line with the prudent person principle which takes account of the particular nature of the scheme. The funding standard under the Act, sets out the requirements regarding assets and liabilities in a wind-up situation so as to ensure that the fund can meet its liabilities in such a situation. With regard to the issues raised in relation to conflicts of interest, trustees of schemes are required to at all times act in the best interests of scheme members. The Pensions Board is not aware of any situation involving employers or trustees where conflicts of interest have arisen in relation to the administration of schemes.

There is little information on general wealth in the country and the alternative ways in which people intend to provide for their retirement, including investing in property. However, in so far as is possible, it is hoped to address this information deficit in research to be undertaken in the context of the Green Paper on Pensions which it is expected will be published by the end of March next year. The Green Paper will also deal with issues in relation to the various tax incentives that are available to support and encourage private and occupational pension provision and the future costs and financing.

David Stanton (Cork East, Fine Gael)
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Question 374: To ask the Minister for Social and Family Affairs if, in view the substantial amounts, estimated to exceed €3 billion per annum, foregone in revenues by the Exchequer and the Social Insurance Fund and the risks that the State will have to increase the old age contributory pension in the years ahead if such funds are administered with maximum efficiency, he will bring forward legislation permitting and authorising the Comptroller and Auditor General to conduct at least one detailed annual value for money audit on at least one significant scheme or firm covering all aspects from contributions made to the payment of annuities on the arrangements for pensions funds that are subject to the remit of the Pensions Board; and if he will ensure that the necessary staff are provided speedily for this purpose. [42695/06]

Séamus Brennan (Dublin South, Fianna Fail)
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My Department has no role in relation to specifying the duties appropriate to the Office of the Comptroller and Auditor General and it would not be appropriate for me to initiate legislation as suggested. Tax foregone through reliefs provided for pension contributions and investment gains is a very significant investment by the State in the voluntary supplementary pensions system. It is important that the State receives value for money for this investment and that the reliefs provided are effective in encouraging and maintaining supplementary pension provision. As the House is aware, the Government will, under the terms of Towards 2016, produce a Green Paper on pensions and this will include an examination of all relevant aspects of the system of tax reliefs which are in place to support private pension provision as well as an assessment of future pension costs and how they can be met. The Green Paper is due to be published by the end of March 2007.