Peter Fitzpatrick (Louth, Independent)
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86. To ask the Minister for Employment Affairs and Social Protection her views on the recent report issued by the Irish Fiscal Advisory Council on the sustainability of future pension provision; and if she will make a statement on the matter. [19026/20]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Irish Fiscal Advisory Council (IFAC) is an independent statutory body whose purpose is to provide its assessment of official budgetary forecasts and proposed fiscal policy objectives.  The IFAC recently published its Long-term Sustainability Report: Fiscal challenges and risks 2025-2050.  This report provides the IFAC’s assessment of the long-run sustainability of the public finances in Ireland to 2050.  One of the report’s key findings is that Government spending is projected to outpace revenue as ageing-related costs rise.  This will pose a range of fiscal challenges for future administrations in terms of balancing current service levels, future sustainability and strategic borrowing levels.

It is very welcome that life expectancy is increasing and that people in Ireland are living longer lives.  While we currently enjoy a more favourable demographic position than many of our European peers, all EU Member States, including Ireland, face many fiscal challenges in relation to long-term ageing and its associated risks.  The recent IFAC report highlighted the fact that while the share of older people in Ireland is relatively low today by European standards, the population will age relatively fast so that the dependency ratio will reach the current EU average by the mid-2030s.  

As set out in the  Programme for Government “Our Shared Future”, a Commission on Pensions will be established to examine sustainability and eligibility issues in relation to State pensions and the Social Insurance Fund.  I am sure that the recent report from IFAC will form one element of the Commission’s considerations, but obviously the Commission will be considering a wide range of studies, views and expert opinion before it reports back to Government.

The Government is acutely conscious of the need to consider the sustainability of the State’s finances.  However, this is not the only consideration when thinking of the State pension,, which is the bedrock of the pension system in Ireland.  The State Pension is extremely effective at ensuring that our pensioners do not experience poverty.  The Government is committed to ensuring that this remains the case for both current, and future, pensioners.

I hope this clarifies the matter for the Deputy.