Vol. 481 No. 2
6 Mr. Noonan asked the Minister for Finance if his attention has been drawn to the grave concern of retired public servants that the Government is refusing to increase their pensions in line with recent pay awards granted to public servants; the Government's policy on this issue; and if he will make a statement on the matter. [15764/97]
I am aware of the concerns of public servant pensioners about their pension increases. This is recognised in the Government's joint programme, An Action Programme for the Millennium, which states that public service pensions will be protected. Against this background of protecting public sector pensions, I have been considering options for uprating pensions in the particular circumstances of restructuring deals under the PCW provisions and I expect to announce a decision on the matter in the near future.
Is the Minister aware that our understanding of the position when we left office was that pensions would be uprated, that this had been agreed in principle and that it remained for the Department of Finance to negotiate the detail with the public sector committee of Congress?
That is not my understanding of the position. This is a complex area, as Deputy Quinn probably knows better than anyone else in the House. Shortly after coming to office I looked at this matter closely. My predecessor set up the Public Service Pensions Commission, chaired by Professor McAleese, to look at pension issues generally. The interim report of the commission has been received by my Department and this matter will be addressed in Professor McAleese's final report. It is a complex matter and not easily solved.
It was very simple during the election campaign.
We will honour the commitment made during the election campaign. I expect to be in a position to announce my decision in the near future.
I take it from what the Minister said that he is contemplating a departure from the position which has pertained since the foundation of the State whereby pensions for public servants are calculated on a percentage of the salary payable to a full-time public servant doing equivalent work. Is he contemplating another arrangement whereby there will not be an automatic calculation of pensions in terms of a percentage of incremental pay for the job?
I am not contemplating another arrangement and that has not been the position since the foundation of the State but that which has pertained for a long time. The Deputy was wrong to make that assertion.
I stand corrected.
I will deliver on the commitment given in the Fianna Fáil-Progressive Democrats joint action programme. Some Members and Congress are aware that it is not a simple matter but I will announce my decision in the near future.
It is a very simple matter if one is a pensioner. Will the Minister apply the full percentage increases given under phase III of the PCW to pensioners?
If I did as the Deputy suggested, a large number of public service pensioners, who have settled under the PCW, would get almost no increase while others would get considerable increases. For example, teachers who comprise a large portion of pensioners would get almost no increase in their pensions while retired nurses would get a considerable increase based on what happened at the end of 1996.
None of the subtleties and complexities existed during the Fianna Fáil election campaign.
I will quote what was said by the Taoiseach and the Leader of the Progressive Democrats on 4 June last:
Both leaders acknowledge the role played by public servants over the decades and believe that retired public service staff should receive fair treatment. Fianna Fáil and the Progressive Democrats in Government will request the Central Review Committee of Partnership 2000 to resolve the claim for pension parity for retired public service staff as a matter of urgency. Mr. Ahern and Ms Harney are committed to restoring the link between pensions and increases in current rates of public service pay.
That remains my position and I shall announce my decision shortly.
That was said on 4 June last; the Minister should read the earlier comments.
The fourth of June was two days before the general election.
Does the Minister agree that in the general election campaign he and his colleagues lit fires around the country and explained to retired civil servants how simple the issue was?
Exactly.
Is it not now a case of the instructions he gave to public servants returning to plague the inventor? Will he now fulfil the commitments he gave in the general election campaign and restore parity to pensioners?
I have already said I will honour the commitment given by Fianna Fáil and the Progressive Democrats in the pre and post-election scenarios and will announce a decision in that regard very shortly.
As the time allocated to questions nominated for priority has expired, Questions Nos. 7 and 8 move into ordinary time.
