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Dáil Éireann debate -
Thursday, 13 Apr 1961

Vol. 188 No. 3

Ceisteanna—Questions. Oral Answers. - Old Age Pensions Means Test.

4.

asked the Minister for Social Welfare whether he intends to abolish the means test for old age pensions.

As the Deputy is aware, there are two types of old age pension, the non-contributory pension and the new contributory pension which came into operation on 6th January last and which is not subject to a means test. The abolition of the means test for non-contributory old age pension would not bring any advantage to the vast majority of non-contributory old age pensioners, over 90% of whom already qualify for the maximum rate of pension under the existing means test. The purpose of the means test is to ensure that such money as can be made available for social assistance goes to those whose need is greatest. Its abolition would benefit only the small minority of non-contributory pensioners receiving payment at reduced rates because they have some means and those whose means are sufficient to exclude them altogether from entitlement to non-contributory old age pension. Many of the last mentioned category would, of course, be people well able to maintain themselves and, therefore, not in need of assistance from the State. Moreover, having regard to the limited resources of our community, which in turn limit the amount of national product available for social assistance, I feel that the Deputy will appreciate that payment of non-contributory old age pensions without a means test to all such persons could only be made at the expense of those who are truly in need of the maximum pension the community can afford.

Accordingly, the answer to the Deputy's Question is in the negative.

5.

asked the Minister for Social Welfare whether he will exclude from the means test for old age pensions British and U.S.A. contributory pensions, or make some allowance in their regard.

The answer is in the negative.

The British and American contributory pensions referred to by the Deputy must, in accordance with the Seventh Schedule to the Social Welfare Act, 1952, as amended by Section 13 of the Social Welfare (Miscellaneous Provisions) Act, 1960, be assessed as means for non-contributory old age pension purposes, and I see no good reason for proposing the introduction of amending legislation in this regard.

Does the Minister consider it right that a person who is compelled, through lack of employment to emigrate and take up employment in another country, which would eventually entitle him to a pension from that country, should be victimised on his return here in not being given a full non-contributory old age pension? Further, does the Minister consider it right that those who are victimised in being compelled to emigrate should be further victimised on their return by the refusal to pay them the non-contributory old age pension?

I think a better case could be made for our own contributory pensioners. They should get the old age pension as well.

The Deputy had a chance of doing that himself but he did not do it.

He went a good way towards doing it. Deputy Norton entered into an agreement with Britain on these matters.

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