Michael Healy-Rae (Kerry South, Independent)
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304. To ask the Minister for Public Expenditure and Reform his views on correspondence (details supplied) regarding pensions; and if he will make a statement on the matter. [25177/13]

Brendan Howlin (Wexford, Labour)
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I trust the Deputy understands the context in which corrective measures have been and are being introduced. There is a very serious disturbance in the economy and a serious crisis in revenue. Ireland is availing of financial assistance programmes provided by the IMF and the EU and has undertaken to meet spending targets in that regard.

As the Deputy will be aware, the then Government decided in 2010, in light of the national budgetary position, that retired public service pensioners should make a contribution to the overall required fiscal adjustment, by way of the Public Service Pension Reduction (PSPR). This decision was taken having regard to the gap between the burden being borne by those currently in public service employment (where the pension related deduction (PRD) and pay reduction have impacted) and their retired counterparts. This Government's intention to require a further contribution to the fiscal consolidation effort from Public Service pensioners with pensions in excess of €32,500, is one element in the wider plan to restore stability to the public finances. The scale of consolidation required can only be achieved with a contribution from all of the main components of public expenditure. None of the measures were or are being done lightly but are considered necessary in view of the wide gap between our revenues and our expenditure, and in view also of our commitment to restore order to the public finances by reducing the general Government deficit to less than 3% by 2015.

Any reduction in pension payments is, of course, a serious step. However, the grave condition of the public finances and the threat to Ireland's economic wellbeing provide the context for such exceptional measures. I would note, for the Deputy's information that the first €12,000 of pension is exempt from the PSPR, and that the bands and rates of the PSPR are progressively structured so that persons on lower pensions are proportionately less affected than those on higher pensions. The additional reductions planned for 1 July 2013 will be confined to pensions in payment greater than €32,500 only. As I indicated to the Alliance of Retired Public Servants when I met with them yesterday, I hope to move towards reducing the burden of the public service pension reduction when economic progress permits.