Bernard Durkan (Kildare North, Fine Gael)
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Question 251: To ask the Minister for Social Protection the basis for his recent announcement that many pensioners in Ireland were very wealthy in view of the fact that many persons who retired in the past ten years, on the advice of banking and investment agencies, invested their savings in what turned out to be unsafe and unsecured ventures resulting in massive losses; if he acknowledges the sense of hurt, dismay and betrayal caused by his insensitive and unfounded remarks and the offence he has caused to a generation that contributed hugely to the State during their lifetime, and more recently contributed to their sons and daughters who were forced to buy houses at inflated prices, which are now affected by negative equity, and who are now threatened with reductions in their pension to which they contributed heavily over their working lives; if he will now apologise for the offence he has caused, particularly in the wake of the earlier Government's commitment now reversed to award free medical cards to over 70s; and if he will make a statement on the matter. [44060/10]

Éamon Ó Cuív (Galway West, Fianna Fail)
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The current Government policy in relation to pensions is laid out in the National Pensions Framework which was launched in March of this year. The Government is committed to seeking to maintain the State Pension at 35% of average earnings. The framework includes a number of changes to the State pension in order to make it more transparent, simple and equitable for those who reach pension age.

The Deputy will be aware that significant progress has been made in recent years in securing the position of older people in Irish society. Between 1994 and 2008 social welfare pensions increased by 148% while the consumer price index for this period increased by 51%. In real terms, increases in the State pension (contributory) have brought the personal rate of pension to a maximum weekly rate up to €230.30 per week with additional benefits provided such as the household benefits and free travel. These pension increases exceeded increases in prices over the period so that significant improvements were made in real terms in pension rates.

In Budget 2010, the Government avoided any cuts in the State pension. Weekly rates of payments to pensioners (those 66 and over) were not reduced and neither were other supports such as the household benefits package which includes the free TV licence, electricity/gas allowance and telephone allowance. The living alone and over 80 allowances were also retained at existing levels. In 2010 more than €4.5 billion has been made available to support over 400,000 pensioners.

The Government has already made difficult decisions and the next steps towards recovery will require further such decisions. Social welfare expenditure for 2011, including expenditure on State pensions, will be considered in the context of the forthcoming Budget, having regard both to needs and to the resources available to meet those needs. In an uncertain economic environment, my priority will be to ensure that the Government strategy to stabilise the financial position is advanced and to protect those most in need in a manner which is sustainable in the years ahead.

The issue of medical cards raised by the Deputy is a matter for my colleague, Mary Harney T.D., Minister for Health.