asked the Minister for Tourism and Transport if he is aware that employees of CIE who were made redundant under the earlier Transport Acts are on fixed pensions averaging between £6 and £9 per week, and if he will introduce an amendment to the existing legislation to allow these pensions to be index-linked with the cost of living.
Ceisteanna—Questions. Oral Answers. - CIE Pensioners.
24.
The question of granting increases in redundancy compensation payable under the Transport Acts has been examined in my Department as sympathetically as possible on a number of occasions over the past few years, but it was concluded on each occasion that provision for better terms would not be justifiable. The main reasons were:—
Firstly, there is a basic difference between normal retirement pension and redundancy compensation. A retirement pension is normally earned by the completion of 40 years' service while redundancy payments are intended to compensate the redundant employee for loss of employment and are intended to cushion the effects of what is hoped to be only temporary unemployment.
Secondly, under the national redundancy scheme redundant employees now receive a lump sum payment only, whereas the special provisions of the Transport Acts provide for annual sum payments for life in the case of an employee with over five years' service.
Thirdly the compensation provisions of the Transport Act, 1958, were very generous, the maximum amount of compensation being an annual sum equivalent to two-thirds of pay at the time of redundancy, and were not to my knowledge equalled in any other country. The compensation, which continues for life, is not affected by social welfare benefits and is not subject to abatement in respect of earnings from other employment apart from employment with a Government Department, local authority, statutory body or State-sponsored company.
Despite the Minister's inhibitions about accepting index linking or any improvements in this fairly small pension, would he be willing to consider individual cases where other supplementary incomes of the various recipients of this pension might be so small as to mean that they were very hard pressed, because £6 to £9 a week is very little? Presumably when the figure was set it was intended to relate to the cost of living and costs generally. Daily that money is becoming increasingly insignificant.
The Deputy will appreciate that I cannot single out individuals in the circumstances he has outlined. Other bodies would be more concerned with that aspect than my Department. The legislation has laid down a particular level which, as I mentioned in my reply, is generous, the maximum amount of compensation being an annual sum equivalent to two-thirds of pay at the time of redundancy. I could not change that for individuals.