Emmet Stagg
Question:80 Mr. Stagg asked the Minister for Finance if he will make a statement in relation to press reports alleging that he and his Department are opposed to the implementation of the Pensions Board report. [13714/98]
Written Answers. - Pensions Board Report.
It is incorrect to say that either I or my Department are opposed to the implementation of the recent Pensions Board report, Securing Retirement Income, published last month.
The Government's response in the matter, to which I fully subscribe, was set out in the statements issued at the time by my colleague, the Minister for Social, Community and Family Affairs. These statements welcome this very detailed report on future pension provision and indicated that it would receive comprehensive consideration by the Government. Indeed, the Government has already accepted in principle the board's proposals regarding the introduction of a personal retirement savings account and of more simple and flexible tax arrangements for pensions generally. Working groups, in which my Department will participate actively, are in the process of being established to carry out the necessary detailed examination of these issues with a view to introducing legislation at an early stage.
In addition, a further working group, to be chaired by my Department is being set up to consider the board's recommendation that there should be part pre-funding of the future cost of social welfare pensions.
Finally, in relation to the board's recommended target rate for old age pensions, my representative on the board outlined my reservations on this matter in the report. Subsequently, the Government decided that the issue of increases in pension rates and the PRSI financing implications of these should be examined in the context of the overall budgetary situation and economic climate.