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Dáil Éireann debate -
Tuesday, 22 Feb 1944

Vol. 92 No. 11

Committee on Finance. - Military Service Pensions (Amendment) Bill, 1944—Second Stage.

I move that the Bill be now read a Second Time. The purpose of it is to remove any possible doubt as regards the correct interpretation of Section 8, sub-section (1) of the Military Service Pensions Act, 1924, and of the corresponding section, Section 20, subsection (1) of the 1934 Act. Both subsections deal with the abatement of pension when the pensioner is in receipt of any remuneration, pension or allowance payable out of public funds. The members of the Oireachtas, when passing these Acts, had undoubtedly in mind that the abatement of pensions under the Acts would take effect from the date from which the pensions were payable and not from the dates on which they were actually granted.

The invariable practice of the Department for close on 20 years, in fact since military service pensions were first paid, was to abate from the date from which the pension was payable. In other words, if a person received a pension in 1944 dating back to 1934 and carrying arrears back to 1934, then his pension was abated year by year over the ten years according to the amount he received each year from public funds. That seems the obvious intention of the sections, and it seems to be the only interpretation that could be justified. If the sections were not interpreted in that manner, it would mean that all pensioners were not treated alike.

The question has been raised as to the validity of this interpretation and practice, and it has been contended that the pension should be abated only from the date from which it was actually granted. Suppose, for instance, that two persons—A and B— each in receipt of £600 a year from public funds, obtained pensions of £200 a year under the 1934 Act, but that A received his award and pension in 1934, while B did not get his with arrears until 1944. The contention I have referred to, if given effect, would mean that A's pension would be abated each year from 1934, but that B's pension could be abated only from 1944. Thus B would be better off for pension purposes to the extent of about £2,000, that is, he would receive his arrears of pension of £200 a year for a period of ten years, simply because it had not been found possible to deal with his claim as expeditiously as that of A. In the Department's view and practice, however, both pensioners were obviously similarly circumstanced, and both pensions, therefore, were totally abated over the whole period.

It is quite clear, I feel, that it was never the intention of the Legislature to make any discrimination between pensions granted at different dates provided that they were all payable from the same date. Accordingly, the intention of this Bill is to remove any legal doubt there may be about the interpretation of the sections and to confirm what has been the invariable practice of the Department for close on 20 years.

I think this particularly brief Bill raises far graver questions than have been clearly dealt with by the Minister. By implication, some of us could read into his remarks the full gravity of this Bill. In effect, what this Bill means is this: that people are, retrospectively, to be deprived of their legal rights which existed prior to its introduction. Anybody reading the Bill, without hearing any prior explanation of it, would see that there was some background to it which required an explanation. Take a section in it like this:—

"The pension shall be deemed to have been continuously in existence during the period beginning on its commencement and ending on the date on which is was granted."

I read that section half a dozen times and, on the first few occasions that I did so, I wondered whether I was either stupid or mad, or whether the man who drafted it was either stupid or mad. When I read it about the seventh time my mind registered the fact that sometimes when a pension is granted it is payable from a prior date —the date of commencement is before the date of granting—which superficially appears to be contradictory. However, I understand the position is this, that there was a flaw in the drafting of the Act and that flaw was not discovered by generations of pensioners— it was not discovered until quite recently—and that people, some civil servants entitled to pensions under the 1934 Act, claimed full pension from the date of its commencement to the date on which it was granted. That claim was resisted. They got legal advice and they were advised that under the law, as it stands at the moment, they were entitled to draw that pension.

If there is any doubt about the law, there are the courts of the country to decide the rights and the wrongs. But I think it is not playing the game fairly by citizens of this country when, through a mistake in our legislation, a citizen finds that he is entitled to something from the State, the State anticipates a legal decision by bringing in a Bill to say: "The law is as defined here." Where it is the other way about, where people may be suffering under hardships because of a mistake in the law or extreme pressure of the law, in no case is the application of the new legislation ever made retrospective; but when it is the State against the individual, then it is retrospective. It is a thing that is unheard of in other Parliaments.

The precedent for this form of legislation dates back to the tug-of-war between this country and Great Britain with regard to an appeal to the Privy Council. A Bill was introduced and enacted here anticipating an appeal to the Privy Council, stating that "The law is as laid down here". That particular appeal was spiked. That was a perfectly legitimate piece of tactics in an immense field of international strategy. But that was accepted as a precedent, and every time the State found that a citizen was entitled to get anything from the State because of an act of omission or because of an error in its legislation, then fresh legislation was introduced to deny that person his legal rights or to prevent those rights being tested in the courts of this country.

I have always held to this simple creed, and I think it would be advisable if we all subscribed to it, that every citizen of the State is entitled to his full rights under the law, whether those are punitive or beneficial, and if the law standing on a certain day gives an advantage to a citizen, that law may be altered with regard to to-morrow, but not with regard to yesterday. Unless we all subscribe to some simple principle such as that, we can never attain the desirable end of having universal respect for the law. The law cannot be used as a matter of jockeyship between the State and the individual, between Government Departments and a helpless individual.

Let us take an example from an older Parliament. When a body of Irishmen were interned on the other side of the water, they sought legal advice and they found that they were illegally interned, that a mistake had been made by a great Government Department over there. The authorities of that country could have introduced a Bill that evening making the internment legal and repairing the omission or the mistake in the previous legislation. They realised that the law was more important than the individual; respect for the law was of more importance than a Government Department saving its face at the expense of people regarded as lawbreakers. Every one of the Irishmen was released and a commission was established and very heavy compensation was paid to those Irishmen. The law was then altered for the future.

Here a small group of civil servants found that, under the law, there was no legal right to deprive them of an earned military service pension between the date the pension commenced and the date on which it was granted. They sought legal advice and they found the Department of Finance was wrong, and that they were entitled to that under the law. We are now asked to subscribe to a Bill to rectify the law retrospectively and to deprive them of rights they had prior to this evening. I think the big thing in this matter is not the amount of money involved; the big principle is that Government Departments as well as humble citizens must learn to have respect for the law, and if legislation is clumsily introduced and passed through this Parliament without proper examination, and mistakes are made, with the result that it gives some little advantage to a group of citizens, no matter how large or how small, until that law is amended they must get their full rights and, if it is amended, it should not be and must not be amended with retrospective effect.

The Minister quite plausibly says to the Dáil that the effect of this little piece of legislation will be to bring about equality with regard to pensions, to ensure that no group gets more than any other group. I do not know whether the Minister put forward that argument seriously. What he is really doing is legislating to ensure that one small group will not be treated like the vast majority. The vast majority of pensioners are not State employees; they get their full pension, even if their salaries were £300, £500 or £10,000 a year; but the very small minority that happen to come into State employment have the whole of their pension denied them if their salary or income from the State amounts to £500 a year.

As I understand this matter, a very small group of people discovered that their pensions were being illegally withheld, and they were prepared to go to the courts and ask the courts to give them their legal rights. We are asked to degrade the courts, to deprive the few individuals of what were their legal rights—whether that was the intention of the Act or not—to jockey them out of their legal rights. I deplore that. I think it is wrong. There are only hundreds of pounds involved here, but even if there were millions involved, the saving is going to be too dear if the cost be disrespect for the law and the undermining of confidence in the sense of fair play. A headline should be set at the top, which would permeate to the middle, and work down. If the only rights persons in this country are going to have are to be rights laid down by the Department of Finance, and if that Department finds that it has been acting illegally, and that the courts will find accordingly, and if the Department is then in a position to press a button so that a Minister can come here with the majority behind him to see that people are tricked out of their rights, then I think that damage which cannot be counted in £ s. d. will be done to this State and to the respect that there should be for Government and for the law.

Deputy O'Higgins has left very little for anybody to add on this question. He has covered the points from A to Z and has given the House information that it desired to have. I am afraid the Minister's statement was remarkable for what he left unsaid. I understand that if a person has a certain income from public funds he is not entitled to draw a military pension. However, a number of people in the public service discovered that it made a difference when the dates of commencement and the granting of pensions varied. They were granted military service pensions. The dates of granting and commencement of pensions did not coincide. There might be an interval of a year or longer. These people discovered that they could be paid. In other words, they could probably claim pensions for a year or longer and intended taking proceedings. I agree with Deputy O'Higgins that people have been paid pensions who are also drawing money from public funds. That is the position in respect to people whose income cannot be controlled. The Minister's statement is that this is an endeavour to equalise matters. People who are not in the public service have been paid over a long period. That is justifiable. For a State Department and a Minister to come here in an endeavour to interfere when an action has started and before it comes before the court, is to do something that is not likely to increase respect for the law. The matter is a serious one. I do not know how many people are affected, but I know that this Bill is not going to do what the Minister hopes. These people have rights in law and there is a place to decide whether or not the provisions of the Act apply to them. There has been too much of this kind of legislation here. There are several instances where, when court decisions were adverse to the Government, Bills were introduced to nullify these decisions. As this is an attempt to nullify any such decision, I suggest that the Minister should not be given this power. While the amount involved is small the principle is a big one.

Our duty as members of the Oireachtas is to scrutinise all legislation, and that duty should be carried to the fullest effect in cases where legislation, as in this case, would have retrospective effect. It is well on an occasion like this that we should weigh the advantages and the disadvantages. It is undoubtedly a disadvantage for this House to pass a Bill so drastic retrospectively as one of this character. At the same time it may be necessary. Before one could come to a conclusion whether this Bill is necessary or not one would have to have certain information. I want to ask the Minister: Why does this point arise only now, 20 years after the 1924 Act was passed, and ten years after the 1934 Act? Is the amount of money involved large, or how much is it? Has any case yet been brought to the courts and decided adversely to the point of view expressed in the Bill? How many applications, if any, are actually pending in court? The reason I ask these questions is to see whether we should pass a Bill of this retrospective character, and to find out whether the results of the original legislation have been to the disadvantage of any individuals. I think it was recognised in previous retrospective legislation which passed after the decision of the courts had been given that certain costs which had been incurred by parties concerned in what was in the nature of a test action would as a result be reimbursed. It would be only fair that parties who commenced proceedings or who consulted solicitors and spent money in the prosecution of their claims should be reimbursed. I do not think they should be left in the position they would be in if the Government succeeded, of having to pay any legal expenses they incurred. If there are such persons provision should be made for them in this Bill.

We have a number of men in Enniscorthy who were awarded pensions under the 1934 Act. They got medals, but they were not paid the pensions. I should like to know what compensation has been given to members of the National Army who met with accidents or to the dependents of those who lost their lives in the service.

The information the Deputy is now seeking is not relevant to this Bill.

That is the 1924 Pensions Act. Does that apply to the 1916 men?

That question will arise under the Supplementary Estimate for pensions to-morrow or at a later date.

Then there is the other question in regard to men who lost their lives while serving in the National Army.

That question does not arise under this Bill. It comes under the Army Pensions Act.

Can the Minister give me any information in regard to these men?

The Deputy can have that information any time he applies for it.

There is nothing extraordinary or new about the provisions of this Bill. Not alone in this Dáil but in various other Dála we have had exactly similar legislation to deal with omissions or with mistakes that had been discovered. I cannot conceive anything that could possibly cause more dissatisfaction than having two sections of public servants coming within the same category under the Pensions Acts, one section being entitled to draw more money than the other. I do not think there should be any disagreement about the merits of this Bill. It is very necessary to keep the various sections affected by it on the same footing.

The necessity for bringing in this Bill at all arises principally from the fact that the particular section referred to was somewhat loosely drafted. I have been informed that no case has come to trial and that lawyers differ, and differ very largely, on the question as to whether in fact our interpretation of the particular section is the correct one. I cannot understand Deputy O'Higgins's references to respect for the law. Probably they had their origin in a desire to introduce a red herring into the debate on this Bill for some reasons of his own, possibly because he thinks that he will arouse more sentimental feelings by the use of arguments of that kind than if he were to deal with facts.

I should like to remind Deputy O'Higgins and other Deputies that the Schedules of the 1934 Act and of the 1924 Act were before the Legislature at the particular periods at which they were passed. I am sure they were given very serious consideration and the amounts which were mentioned in these Schedules were probably regarded as being generous. All we are asking in this Bill is that the interpretation which was given to the particular section which has now been brought to the fore will continue to be given to it.

Even if it was wrongly given.

It was wrongly given. That is a matter of opinion.

Then you should win in court.

It is because some individual or group of individuals are always looking for this sort of thing and sometimes discover what they believe to be a flaw, that we have decided we must protect the Exchequer against any attempt by these types of persons to drive the proverbial coach and four through these Acts. Deputy Esmonde asked a series of questions which were very necessary questions to put. He first asked how this matter arose. I have just explained how it has arisen. As I say, some individual discovers what he deems to be a flaw in the Act and makes an effort to take advantage of it. As to the question whether any case has been brought to court, I am informed that no case has been brought to court. There are about 2,800 cases concerned and the amount likely to be involved would be about £300,000. I think both this Government and the previous Government treated applicants for pensions in a really generous manner. A sum of £500,000 or so is paid annually under the 1924 Act and the 1934 Act. I do not think that anybody can suggest that that is not generous. Having regard to the fact that these Acts were before the House and that the schedules were agreed to, I do not think anyone can say that we are now flouting the law, trying to evade the law or bringing the law into disrespect. There is no question that when the Legislature passed these Acts, it had in mind that these abatements would take place, when it was found that individuals were receiving from public funds the sums mentioned in the schedule. All we are doing here this evening is endeavouring to ensure that the Act will be interpreted as it has been interpreted for the last 20 years and that, as far as we can secure it, this sum of £300,000 will not be lightly given away, especially when we feel that the section of the Act does not lend itself to that interpretation.

Will the Minister tell us how he has arrived at £300,000?

We arrive at that sum by reason of the fact that there are 2,800 pensioners who were receiving sums of money from public sources. Reference to the schedule would give anyone a very good idea of the amount involved.

But surely all pensions have not had retrospective effect? The pensions did not go back ten years so that there must be only very few affected. I do not see how the amount could be much more than a few hundred pounds.

All pensions that have been dealt with under the 1934 Act go back to 1934. That is one of the points I made in my opening statement. Where an individual obeyed the instructions of the Pensions Board at that time to make early application, he would be victimised as against the individual who did not apply until a much later period if our interpretation were not correct.

Am I to understand from the Minister that the difference between the total sum paid in pensions, if his interpretation is correct, and the sum which would be paid if the interpretation of the applicants is correct, would amount to £300,000?

That is the estimate given to me, anyhow.

It is astonishing.

I should like to say—

The Deputy may only ask a question as the Minister has concluded.

£300,000 would go a long way in giving pensions as low as 3/6 a week. There must be some people getting very heavy pensions when the total amount is £300,000.

Question put and declared carried.
Committee Stage ordered for Tuesday, 29th February.
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