Paul Kehoe (Wexford, Fine Gael)
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Question 578: To ask the Minister for Social and Family Affairs the policy in place to deal with the weakening pound; the currency rate used to calculate a UK payment as part of an Irish means tested claim; and if he will make a statement on the matter. [12056/08]

Martin Cullen (Waterford, Fianna Fail)
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In assessing means deriving from payments received from EU Member States (including the U.K.) which do not form part of the EMU currencies, my Department uses the conversion mechanism provided for under Article 107 of Council Regulation (EEC) No. 574/72 on Social Security for Migrant Workers. The exchange rates for converting Sterling and other non-Euro currencies are published quarterly in the Official Journal of the European Union.

Under this mechanism the conversion rate used for means testing purposes is derived from the average of the daily exchange rates in the first month of a quarter. This rate is then used in all conversions made during the course of the succeeding quarter. Alternatively the conversion rate applicable to the next succeeding quarter is used if it is found to be more beneficial to the customer.

Generally, pensions are not reviewed specifically because of movements in the exchange rate as over time rate fluctuations tend to even themselves out. The application of Rule 5 and similar disregards to State Pension means assessments over a number of years mean that it is very unlikely that these pensioners would qualify for an increase in pension.