Last Monday night, the Minister for Transport, Tourism and Sport, Deputy Paschal Donohoe, signed the commencement order to the State Airports Act giving power to the trustees of the pension scheme of workers in Dublin Airport, Aer Lingus and SR Technics very significantly to slash the pensions of the members of the scheme, divided between retired, deferred and active. It is the first time in the history of the State that a Government has legislated to change a private pension scheme and to effect such draconian cuts to people’s pensions. Some 5,000 retired workers from Aer Lingus, Dublin Airport, SR Technics and other companies will lose the equivalent of six weeks’ pay per annum in addition to the 2.5% they will lose as a result of the Government’s pension levy, and it will be in perpetuity. In some cases the loss will be as high as €250 per month. The most savage cuts of all have been reserved for the deferred members of the scheme, who were told it was compulsory that they sign up and pay pension contributions and whose pensions will be cut by 50% or more. I do not know how anybody could justify it. A woman who will be 65 next year and who is expecting €30,000 will receive €15,000.

It is a disgrace.

The active members have been bullied into an inferior pension scheme under the new order. The Tánaiste indicated to interested parties and stakeholders that she was working with them to bring about a fairer resolution to the scheme. Did the Minister, Deputy Donohoe, consult with the Tánaiste or did she know he was about to sign the commencement order on Monday night? My colleague, Senator Darragh O’Brien, has been fighting this for a long time and had, with others, tabled amendments to the Social Welfare Bill that could have rectified the situation. It seems to be a choreographed operation by the Government. On the following day, the EGM was scheduled for December, when shareholders will be asked to vote through these cuts to the pensions. Will the Government use its 25% shareholding in Aer Lingus to vote through the cuts? Is it fair to the pensioners and deferred pensioners concerned? It is not too late to intervene. The Taoiseach could revoke the commencement order and work with the stakeholders to ensure a fairer outcome to the situation than the extraordinary and very draconian cuts that have been imposed on pensions to which, up to recently, people felt they were entitled. What is the Taoiseach’s position on it? What will the Government do at the AGM? Will it move between now and January to revoke the situation and work towards a better solution?

It is injustice.

This has dragged on for years and has been of great concern to those involved. The deficit is €769 million. We established an expert panel that considered all the combinations and possibilities involved and was able to bring forward a further €20 million. Scheme membership comprises 5,000 active members, 5,000 deferred members and 5,000 pensioners. There is widespread agreement within the Irish Airlines Superannuation Scheme, IASS, that the scheme is unsustainable. The employers are putting in moneys to cushion a move from a defined benefit to a defined contribution scheme. The report of the expert panel recommended that additional moneys be paid to the deferred pensioners, and the employers have agreed to this. Legally, the employers' role is voluntary and there is no legal requirement that they sustain the scheme. The only other option, in the event of current negotiations being unsuccessful, is for the Pensions Authority to wind up the scheme. Legal action by deferred members could undermine the current proposals, which are very finely balanced, and derail the proposals. Yesterday, it was announced that a ballot of members resulted in a 70% vote in favour of the pension deal.

This has gone on for years with no solution. The expert panel that was established made recommendations that further moneys be made available, of which €20 million came forward. The scheme is a multi-employer scheme and its membership comprises employees from Aer Lingus, 69%, the Dublin Airport Authority, 27% and SR Technics, 4%. It carries a deficit of €769 million. The negotiations have gone on for years and have failed to resolve the difficulties with the scheme. There have been intense efforts in recent months to try to resolve the difficulties with the introduction of the legislation and the establishment of the expert panel to report on these matters. The members of the scheme who are unhappy with the situation have sought a meeting and I have had some correspondence from them, to which I intend to respond. At a meeting on 2 October, and in recent representations, deferred scheme members outlined a number of concerns. The situation has been unresolvable for years. The alternative is that the Pensions Authority wind up the scheme completely. It is a very difficult situation with which to have to deal.

The alternative the Taoiseach has put forward is not the only alternative. How would the Taoiseach like it if somebody arbitrarily decided to halve his pension entitlements?

I did. I cut them by 35%.

Deputy Howlin is not so great at the sums; 35% is not half.

Nobody represented the deferred pensioners in any of the negotiations or discussions, and they have taken the biggest hit.

The Taoiseach can work that out for himself because it is fairly obvious what happened. The pensioners have taken a hit as well, amounting to six weeks' pay. In addition, the pension levy which was imposed three to four years ago has resulted in a 2.5% cut - forever - in their temporary pension entitlements. That levy should never have been brought in because it has significantly undermined many pension schemes.

Two years ago, the Social Welfare Bill facilitated single insolvencies, which basically allows profitable companies to run down their pension schemes. In essence, a roadmap has been given to such companies to do just that in future. Through the signing of the commencement order, together with the Government's legislative intervention, a Trojan horse has essentially been created. We will see more of this emerging in the coming years concerning other companies and other pension schemes.

By any objective yardstick or criterion, the way this is being worked out simply is not fair. I do not see how anybody could suggest it is fair if those in a particular grouping lose 50%-plus of their pension entitlements. Will the Taoiseach say whether the Tánaiste was aware that the Minister for Transport, Tourism and Sport, Deputy Donohoe, was going to sign the commencement order on Monday evening? Discussions were going on with the members' representatives with a view to identifying potential fairer outcomes and resolutions. Is the Taoiseach simply saying he is not in a position to intervene or do anything to effect a fairer outcome to this situation?

It is like a lot of other things that were allowed to drift, thus making the situation worse than it ever was. Just over three years ago, the deficit was €350 million; it is now €769 million.

That happened between 2011 and 2013. Tell the truth.

Please, Deputy.

This has gone on for years.

On your watch.

Please, Deputy.

As I pointed out to Deputy Martin, the situation has gone on for years. Just over three years ago, the deficit was €350 million. It is now €769 million - that is, it is getting worse.

Will the Deputy please allow the Taoiseach to reply?

The trustees wrote to the Minister for Transport, Tourism and Sport. They recommended that the course of action being pursued here following legislation and the expert panel is the best option. This was voted upon by the membership in, Aer Lingus and 70% gave their verdict in favouring it. The Department of Finance said this could rescue the situation. As I said, the deficit now is €769 million. The Minister for Transport, Tourism and Sport met with the Tánaiste on Monday before he signed the commencement order.

Will the Labour Party stand over it?