Retirement savings and pensions
Broughan asks about universal retirement savings, possible pension cuts and an Aer Lingus debate. The Tánaiste rejects reducing core welfare rates and explains that an OECD-informed group is designing a possible universal pension-savings scheme.
Deputy Tommy P. Broughan is next. May we have brevity, please, in questions and answers, as there are many Members offering?
Comment on this
When does the Tánaiste expect to set up the universal retirement savings group? When does she expect to bring forward legislation, in other words, will it happen before the Government's term ends? Was it not the case that a paper was prepared in the Department of Public Expenditure and Reform that called for a cap on or a cut in the State pension?
Will we have an opportunity to engage in a wide-ranging discussion in the House on Aer Lingus, given the interest of what Mr. Michael O'Leary of Ryanair calls mere backbenchers, particularly in the Tánaiste's party, in the future of the airline?
Comment on this
The Deputy has referred to what people might or might not have suggested in terms of reducing the retirement pension. It is a little like child benefit. There are many views and many people would like to see core social welfare payments reduced. Certainly, a lot of advice was proffered to me as Minister for Social Protection and all I can say is that I resisted all of it.
Comment on this
The Tánaiste did not. She should ask all of the under 25 year olds who have been affected.
Comment on this
In fact, as recently as last week, people from the IMF suggested we reconsider the universal payment of child benefit. People are entitled to their views and there is a range of them. For example, the same people advised Fianna Fáil to cut basic social welfare payments by €16.40 per week.
Fianna Fáil accepted that advice. I did not. We maintained the core social welfare payments, the weekly rate.
Comment on this
Except that the Tánaiste cut the allowance to under-25s by €50 a week and the lone parents' allowance was cut by €88 a week. Is the Tánaiste forgetting about that?
Comment on this
The Tánaiste must have a selective memory.
Comment on this
-----as Minister I commissioned the OECD to do a report to look at the situation of people who only have the State retirement pension. It is a relatively good retirement pension by comparison with most countries, but it is a tight income for those who retire only on that. The OECD recommended that we establish, as has been done in Australia and New Zealand, either a mandatory or a soft mandatory, opt-in or opt-out, universal pensions savings scheme. The group is going to look at the nuts and bolts of how we would do that. This has been done in Australia, New Zealand and, in recent years, in the UK. It has been the subject of successive reports, particularly to previous Ministers in my Department, in Green Papers and White Papers. I hope we will be able to undertake this. We could only undertake it as the economic recovery gets under way and people's income improves because essentially people would be saving additional money for their retirement and those structures must be established.
On Aer Lingus, it is a matter for the Whips if there is to be a debate on that. The Whips can arrange a discussion on that.