Michael Healy-Rae
Question:75. Deputy Michael Healy-Rae asked the Minister for Jobs; Enterprise and Innovation his views on regulating the retail sector; and if he will make a statement on the matter. [43978/12]
View answerGrocery Industry Competition
Questions (75)
Written answers
The Programme for Government contains a specific commitment to enact legislation to regulate certain practices in the grocery goods sector. I intend to give effect to this commitment by including an enabling provision in the legislation currently being drafted by the Office of the Parliamentary Counsel to merge the National Consumer Agency and the Competition Authority, which will allow for the introduction of a statutory Code of Practice. It is hoped that this legislation will be published later this year.
It is important to point out that in introducing a statutory Code the intention is not to protect one stakeholder over another nor is the Code intended to prevent stakeholders such as retailers and suppliers from engaging in robust contractual negotiations as happens in most other sectors of the economy. It is also the case that the Code is not seeking in any way to determine the price of grocery goods. Rather the essential value of the Code is that by regulating problematic practices in the grocery goods sector it seeks to strike a fair balance between the competing interests of the various stakeholders including the interests of the end user, the consumer.
The Government is strongly of the view that it important to ensure there is balance in the relationship between the various players in the grocery goods sector and that Ireland continues to have robust agrifood and retail sectors, particularly given the importance of these sectors to the national economy. The introduction of a Code of Practice, as provided for in the Programme for Government, is intended to achieve such a balance taking into account the interests of all stakeholders in the grocery goods sector including the interests of the consumer and the need to ensure that there is no impediment to the passing-on of lower prices to consumers.
Proposed Legislation
Questions (76)
Robert Dowds
Question:76. Deputy Robert Dowds asked the Minister for Jobs; Enterprise and Innovation the timeline for his review of the Employment Permits Acts 2003 and 2006. [43982/12]
View answerWritten answers
My Department is currently preparing new legislation, the purpose of which will be to consolidate and streamline the Employment Permits Act 2003 and the Employment Permits Act 2006. It is anticipated this legislation will:
- update provisions for the employment permits schemes in line with policy and economic developments since 2007;
- provide the flexibility to deal with changing labour market, work patterns and economic development needs which often require rapid response; and
- cater for the accession of new Member States to the EU.
My Department is also actively considering the issues raised in the recent High Court judgement in relation to unlawful employment contracts. In that regard, my officials are currently considering the important policy and legal implications of this judgement in the area of employment permits and employment rights and are developing options in this regard.
In tandem with this, my Department is conducting a review of its employment permit schemes in the context of simplifying employment permit applications and streamlining the application process for the important ICT sector. The availability of high-level ICT skills for the ICT sector is of strategic economic importance to Ireland in terms of continued growth and investment. However, recruitment challenges have emerged for high-level ICT skills. While increasing the supply of high-level skills from domestic sources is the most sustainable way forward in the long term, in the short term, companies will continue to need inward migration as a source of skilled ICT personnel.
My Department, in conjunction with Forfás, will shortly be reviewing the Green Card Employment Permit Scheme which is used by Ireland to meet labour market requirements where skills shortages have been identified by reference to analyses undertaken by the Expert Group on Future Skills Needs (EGFSN).
Work is proceeding with regard to the preparation of new Employment Permits legislation. Heads of Bill were approved by Government last April and since then, my Department has been engaged with the Office of the Parliamentary Counsel (OPC) in order to progress the drafting of the Bill. My Department is currently considering a second draft and expects to revert to the OPC shortly with a view to achieving a third draft as soon as possible.
Proposed Legislation
Questions (77)
Robert Dowds
Question:77. Deputy Robert Dowds asked the Minister for Jobs; Enterprise and Innovation if he intends to consult with stakeholder groups regarding his review of the Employment Permits Acts 2003 and 2006; and if so, the form the consultation will take. [43983/12]
View answerWritten answers
My Department is currently preparing new legislation, the purpose of which will be to streamline the Employment Permits Act 2003 and the Employment Permits Act 2006. It is anticipated this legislation will:
- update provisions for the employment permits schemes in line with policy and economic developments since 2007;
- provide the flexibility to deal with changing labour market, work patterns and economic development needs which often require rapid response; and
- cater for the accession of new Member States to the EU.
My officials consult with stakeholders on an ongoing basis and will continue the consultation process.
Pension Provisions
Questions (78, 96)
Tom Fleming
Question:78. Deputy Tom Fleming asked the Minister for Social Protection her views on a submission (details supplied) by the Retired Nurses Association, Kerry Branch. [43907/12]
View answerMichael Healy-Rae
Question:96. Deputy Michael Healy-Rae asked the Minister for Social Protection his views on a reduction in pension and entitlements; and if she will make a statement on the matter. [43981/12]
View answerWritten answers
I propose to take Questions Nos. 78 and 96 together.
The Revised Estimates for my Department provide for expenditure of nearly €6.26 billion on pensions in 2012 or 30.4% of total expenditure. The Comprehensive Expenditure Report, 2012–2014, published last December, provides for additional new expenditure reduction measures of €1,033 million over the next two years in the Department of Social Protection's budget.
This includes €540 million of new savings to be achieved in Budget 2013. Reducing overall expenditure in 2013 and beyond in line with these targets will be very challenging. The Government has not yet finalised its consideration of these matters. The level of expenditure on the pensions paid by my Department in 2013 will be announced on Budget Day.
In the meantime, I will be holding a pre-Budget forum tomorrow, 12 October, to which I have invited thirty five groups, including Age Action. I will listen carefully to their views and proposals in relation to the forthcoming Budget.
Defined Benefit Pension Schemes Issues
Questions (79, 88, 103)
Dominic Hannigan
Question:79. Deputy Dominic Hannigan asked the Minister for Social Protection her plans for the minimum funding standard for defined pension schemes; and if she will make a statement on the matter. [44002/12]
View answer
Finian McGrath
Question:88. Deputy Finian McGrath asked the Minister for Social Protection her views on correspondence (details supplied) regarding defined pension schemes. [43920/12]
View answer
Ray Butler
Question:103. Deputy Ray Butler asked the Minister for Social Protection her policy regarding defined benefit pension schemes; the changes, if any, that have been introduced; and if she will make a statement on the matter. [44014/12]
View answerWritten answers
I propose to take Questions Nos. 79, 88 and 103 together.
I am very aware of the serious funding challenge facing defined benefits pension schemes. The fundamental problem is that pensions are significantly more expensive due to increasing life expectancy and lower than expected investment returns which are reflected in increased annuity rates.
The Pensions Regulator suspended the Funding Standard four years ago, following the downturn in the financial market, to give trustees/employers an opportunity to assess the impact on pension funds and to enable them to have sufficient time to develop responses to the challenge. The re-introduction of the Funding Standard was delayed on a number of occasions pending changes to legislation which were designed to help trustees respond to the funding challenges facing pension schemes. Among the measures introduced at that time was the provision for sovereign annuities. This provides pension scheme trustees with an option of purchasing annuities, which will have the effect of reducing pensioner liabilities under the Funding Standard, sovereign annuity products are now available and it is expected that the range of products will grow over the coming months.
The Funding Standard provides a benchmark against which the “health” of a scheme can be tested. The existence of the Funding Standard itself is not the central issue in relation to whether a scheme is properly funded. Rather the responsibility rests with the employer and the trustees for ensuring that the scheme is properly funded and managed. However, the Funding Standard does provide the regulatory mechanism for ensuring that a scheme can live up to the “promised” level of pension benefits.
The requirement for a risk reserve is being introduced to provide a level of protection for scheme members against future volatility in financial markets. It is accepted that the requirements for a risk reserve presents an added challenge for schemes. However, guidance issued by the regulator identifies options which the scheme can consider in meeting this requirement by 2023.
Reference has been made to the easing of the solvency regime in a number of other countries. It should be noted that the solvency regime even after those changes is still more onerous that the current Irish regime. It should be noted that the changes to the Funding Standard are being implemented over the next 11 years, not immediately. This is the longest recovery period generally allowed in any European country.
The Pensions Board recently announced that the timeframe for pension schemes to submit funding proposals has been extended to 30 June 2013. This extension will give schemes additional time to help them address the issues they are facing.
Overall the changes made to defined benefit schemes are intended to bring increased stability to pension promises in the future and lessen schemes’ exposure to risks.