Ceist:
37 Mr. Hayes asked the Minister for Social, Community and Family Affairs when he intends to publish the Pensions Bill; and if he will make a statement on the matter. [10742/01]
Priority Questions. - Publication of Legislation.
One of the key features of the forthcoming Pensions Bill is the provision of a legislative framework for the introduction and regulation of a new savings vehicle, the personal retirement savings account – PRSA.
I am aware the Government's plans for legislation in this area are of great interest, particularly to the social partners and the financial sector. Due to the size and complexity of the Bill, it has not been possible to finalise it before Easter, as had been planned. However, I propose to make the draft legislative framework for PRSAs public on Thursday of this week. This document will also outline the proposed tax treatment of PRSAs. I will ensure that the document is laid before the Houses and that copies are forwarded to the Opposition spokespersons on Finance and Social, Community and Family Affairs.
In relation to the Bill itself, as I am sure the Deputy is aware, it will be extremely complex legislation making legislative provision for the recommendations of the Pensions Board in a number of areas. For example, in addition to PRSAs, the Bill will contain proposals for the establishment of a pensions ombudsman, a mechanism to deal with the treatment of fund surpluses where pension schemes are wound up, a reduction in the vesting period from five to two years, the revaluation and preservation of benefit in respect of pre-1991 service, the transfer of preserved benefit from funded to unfunded schemes, enhanced member protection in relation to schemes compliance with the requirements of the minimum funding standard, greater consistency in the calculation of transfer values and a mech anism for scheme trustees to introduce indexation of occupational pensions and improved regulation of multi-employer schemes.
This list, which is not exhaustive, illustrates the many and varied issues which the Bill will address and the Government remains firmly committed to publication as a matter of priority.
Mr. Hayes
Once again, this is a matter of competence. The Minister has been completely incompetent in bringing forward this legislation to date given that on 15 February 2000 he gave a commitment to introduce the legislation during the summer of last year. Late last year the Taoiseach informed us it would be before the House at Easter. Now the Minister is saying, subject to what the Taoiseach said last week, that we will not have the Bill until summer of this year. Once again, the Minister, who puts himself forward as being so competent—
Will the Deputy ask a question? This is Question Time.
Mr. Hayes
—is showing that he is not up to the job of bringing forward key legislation in terms of the extending occupational pensions.
I remind the Deputy that this is Question Time.
Mr. Hayes
When are we likely to see the legislation?
As I said earlier, I will bring forward on Thursday the draft legislative framework in relation to the PRSAs, which is the major portion of the Bill. If the Deputy is ever lucky enough – he probably will not be for some considerable length of time – to be on this side of the House—
Mr. Hayes
I would not bet on it.
—he would know that getting through such complex legislation as this takes a lot of time. In addition, one is subject to the difficulties of getting it through the Parliamentary Counsel's office.
Mr. Hayes
So it is their fault.
Because of other Bills which had a higher priority, such as the human rights commission legislation, which had to be brought forward, and the four referenda, which are being brought forward, the pension Bill, unfortunately, had to be pushed back until after Easter.
Mr. Hayes
It is clear that once again the Minister has been caught on this issue and is once again blaming other people for what is his fault.
Under the freedom of information legislation, it was recently discovered that key officials in the Department of Finance were opposed to the Government's new national savings scheme on the basis that it would divert money from much needed pension schemes. What is the Minister's view on that?
The new savings scheme is not my responsibility.
Mr. Hayes
The Minister will not find that in the brief.
The Deputy is confusing both issues. He is not comparing like with like.
Mr. Hayes
What is the Minister's view?
If the Deputy understood what is intended in relation to PRSAs, which are much more long-term than a finite savings scheme over five years which only gives a window of opportunity of one year by which one must get into it, he will know that this is much more long-term legislation than the SSIAs.
Mr. Hayes
Is it the case that one of the reasons we have not seen the legislation is that there is a turf war going on between the Department of Social, Community and Family Affairs and the Department of Finance on this issue? There is no clear Government thinking on the issue of pensions given that only 600,000 people have occupational pensions. There is a need to radically increase that number. There is confusion and a turf war and, consequently, we are not getting the legislation.
The Deputy is wrong. The savings scheme has not in any way delayed the bringing forward of the pension Bill. The pension Bill is incredibly complex that requires very detailed examination by the Parliamentary Counsel. Even though it has been substantially drafted, it has to be signed off by the Parliamentary Counsel. As I said earlier, because other legislation has a time component, such as the four referenda which, hopefully, will be brought forward by the end of May or early June, it has taken precedence in the Parliamentary Counsel's office.
Question No. 38 answered with Question No. 36.