asked the Minister for Finance which EEC countries have (a) a pension parity policy and (b) a policy for automatic adjustment of pensions for cost of living increases.
11.
Ceisteanna — Questions. Oral Answers. - Membership of EEC.
10.
asked the Minister for Finance if he is aware that full parity exists for civil service pensioners in most member countries of the EEC, including automatic adjustments for cost of living increases; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 10 and 11 together.
According to my information, the position is as follows: In Italy pension increases are granted automatically following a pay increase and they normally come into effect from a date later than the date of the pay increase.
In the Federal Republic of Germany the pensions of established officials are increased automatically in line with the increases in salaries of serving staff and from the same date. The pensions of other public employees are adjusted automatically on 1st January each year by reference to the change in total earnings of all insured persons in the preceding three years.
In France pension increases are granted automatically when there is a pay increase and are paid with effect from the date of the pay increase.
In the Netherlands pension increases are granted automatically when there is a pay increase of a general character in the State services. The pension increases are granted with effect from the same date as the pay increases.
In Belgium and Luxembourg pension increases are granted automatically by reference to increases in public pay, and are effective as from the same date.
As I announced in the financial statement of 19th April, 1972, I am granting parity to our public service pensioners by bringing their pensions up to levels related to pay as on 1st January, 1972, the date of the most recent general revision of public sector pay.
Having regard to the comprehensive answer the Minister has given, would he not consider introducing a system that would apply automatically to retired State pensioners in Ireland? It would be simple to do this and it would be appreciated by retired civil servants, teachers and gardaí. The Minister has now granted pension parity and in order to ensure that the pensioners retain their purchasing power a system could be evolved whereby State pensioners would automatically receive an increase each year on 1st January.
Since we have granted parity the position in future years will be considerably easier than in the past in that the gap to be closed will not be as great. Consequently it will be considerably easier to maintain parity. However, the question of increases in public service pensions is one that has to arise in the context of the budget each year.
This does not happen in the other countries because they are granted increases automatically each year. Can the Minister state why this cannot be done here? Further, can the Minister state if parity will be granted immediately or on 1st October? If the increases are not granted until October there will be another gap in the State pensions.
From the information I have given it will be seen that there is not the same practice in operation in each of the EEC countries. It is correct that parity has been granted as from 1st October. It is also true that there is no general pay increase in the public service due between this time and 1st October.
Why has the Minister provided £17 million in the budget for the public service pay increases?
I think the Deputy misunderstands the position.
I do not think I misunderstand it.
Can the Minister state what difficulty there would be in introducing a system which would automatically allow for increases in State pensions? It is done in other countries. Why must State pensioners be obliged to come forward every year to the Minister for Finance with hat in hand and ask for this increase as a concession, rather than a right?
I do not know if Deputies realise we have granted parity. The Government accepted the principle and we have granted parity.
I am calling Question No. 12.
How can the Minister reconcile his statement that the Government have accepted the principle of parity with his remark that the question of increases in public service pensions is one that has to be considered in the context of the budget each year?
Would Deputy FitzGerald please allow questions to continue. I have called Question No. 12.