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Seanad Éireann díospóireacht -
Wednesday, 14 Nov 1945

Vol. 30 No. 10

Military Service Pensions (Amendment) (No. 2) Bill, 1945 ( Certified Money Bill ). —Second and Subsequent Stages.

This Bill deals with the relaxation of abatements of Military Service Pensions in respect of persons in receipt of any remuneration, pension or allowance payable out of public moneys whether provided by the Oireachtas or out of the Central Fund or by means of the poor rate or any other rate imposed by a local authority. About 18 months ago, I had the task of introducing a short Bill to make clear that a pension was subject to abatement not from the date it was granted but from the date from which it commenced. During the course of the debate on the Bill, several Senators urged that the persons on the lower end of the abatement schedules should be relieved, and it was suggested by some members that there should not be any abatement at all. On the Final Stage of the Bill, I said:—

"Having regard to what Senators have said, I will undertake to bring their statements to the attention of the Government and to do whatever is possible for these people."

I have carried out that undertaking and the decision of the Government is now incorporated in Sections 2 and 4 of this Bill. It abolishes all abatement of pension in respect of receipts from public moneys up to £250, and the ceiling for total abatement is raised from £550 to £1,000, all intervening receipts enjoying a proportionate reduction.

The effect of the change in the Schedules is as follows:—

1. In the category up to £250, 2,004 pensioners will no longer suffer any abatement, and the cost to the State will be about £10,751.

2. In the category from £250 to £550, 843 will get a relaxation in the degree of abatement, and the cost here will be about £16,857.

3. In the category from £550 to £1,000, 141 persons hitherto suffering total abatement will now get a partial relaxation at a cost of £2,274.

The annual cost of this revised Schedule of Abatements will thus be about £30,000.

Finally, another section of the Bill (Section 3) amends a drafting error. Section 2 (2) (a) of the 1934 Act deals with cases of deportation under various Acts and Regulations but it fails to mention the Aliens Restriction Act of 1914. A case has been found in which an injustice is being done to a claimant through this drafting omission, and in this Bill we are seeking to remedy it.

In conclusion, I want to make it clear that the Government also considered the recommendation made in this House that the Abatement Schedules should be abolished in their entirety. The present Bill is, however, as far as the Government is prepared to go in the matter. In all the circumstances, therefore, I trust that the measure will meet with the approval of this House.

A Chathaoirligh, I think that this Bill ought to be supported, but I do not think the Minister has given what is, perhaps, the most cogent reason for the Bill itself. The first Military Service Pensions Act, in 1924, prescribed that pensioners who had salaries or remuneration out of public funds—that is to say, as the Minister has indicated, who had posts under the Government or under a local body— should have certain abatements of their pensions. Now, there were a number of reasons for that, and they were sound reasons; but very shortly after that Act was passed it became clear that, in spite of the soundness of the reasons, there were in fact certain inequities. For example, at that particular moment it was thought that Government employment was within a very narrow range, since Government or public employment was thought to be, and technically was, and still technically remains, employment under Government bodies, but the very next year the Shannon scheme came along and the Electricity Supply Board was formed. I discovered, as I was interested in the matter—not for myself, of course—that a person employed by the Electricity Supply Board was not held to be in receipt of public funds and would therefore get his pension in full if he were entitled to one. This immediately resulted, I remember very well, in a feeling that it was very inequitable. For instance, the Dublin Corporation electricity staff was taken over by the Electricity Supply Board, and members of that staff, whose pensions had been subject to abatement formerly, now found that their full pensions became payable. A person in receipt of a similar pension employed in the Dublin Corporation, in, say, the housing department, had his pension abated, while the other pensioner, who had gone to the Electricity Supply Board, had no abatement of his pension. Apart from the Electricity Supply Board, a number of other bodies came along which were, in fact, Government-controlled, such as the Industrial Credit Corporation, the Agricultural Credit Corporation and, subsequently, the Tourist Development Board, the Turf Development Board, and the sugar company, which came along just immediately after the Electricity Supply Board. Now you have Córas Iompair Éireann, another Government-controlled body, and which is in charge of the whole transport system of the country.

Pensioners employed under all these bodies get their pensions in full, but those employed in direct Government services do not. That, I think, is the best argument for the Bill: that it did not work out equitably; that those employed under Government-controlled bodies, which afforded a very considerable amount of employment, could get their pensions in full, whereas those actually in Government services or in the service of the Dublin Corporation or a similar body, had to suffer an abatement.

For that reason, the Bill is welcome, and I think that the argument is altogether in favour of abolishing the abatement altogether at this particular stage. The amount concerned is a comparatively small one, and the charge is one which, in the nature of things, is a decreasing charge, because the men concerned are now over 50— a considerable number of them over 60—and therefore the amount payable will decrease every year. However, I take it that the Minister has failed to make any impression on the Department of Finance in the matter, and I suppose the thing will have to stand as it is, but it will still work out very inequitably in the case of men with incomes over £500. Officers coming out of the Army at the present moment will get a comparatively small pension. A great number of them will now be coming out and be coming out together owing to the fact that they joined the Army in 1913. They will be coming out together, and with a comparatively small pension. If a man coming out is fortunate enough to get a job in the railway or in any of these other semi-Government or Government-controlled bodies such as the Tourist Board, the sugar company, and so on, he will get his full pension; but a man who gets employment in the Board of Works—an engineer, for example—will have an abatement of his pension. For these reasons it is really not an equitable scheme, but the Minister has evidently failed to impress the Department of Finance, and I suppose we shall have to be thankful for what is here.

Another point that is not dealt with here at all—and I suppose that the Second Stage is the only stage of the Bill in which we can make an allusion to it—is concerned with those people in receipt of small pensions who find themselves in bad circumstances, and who also find that the fact that they have a pension means a decrease in the amount they can get under the Unemployment Assistance Act, the Old Age Pensions Act, and similar Acts. That, I think, is very unfortunate, because the total amount they can get, particularly in the case of the old age pensioner, can only be 15/-. If he has a pension of less than 10/-, it means that he gets an old age pension of 6/- or 7/- instead of 10/-. I think that that is wrong. Steps should also be taken to see that the possession of a small military pension of this kind would not disqualify a man in the case of ordinary reliefs such as the old age pension. Perhaps the Minister will say that what I am asking for now is a much wider problem, but I think that, perhaps, the whole question of incomes and means tests, particularly in connection with old age pensions, might be dealt with.

In the meantime, however, the Bill itself is good so far as it goes, and it will remedy a certain amount of the inequity that has taken place since 1925, which arose with the accumulation of various Government-controlled bodies. Even though the Bill does not go the whole way, I think it is to be welcomed. The Minister, of course, spoke in the Dáil about the extraordinary situation in which officers and men in the Army, who have a pension under the 1934 Act, suffer no abatement of their pensions, whereas people who come under the 1924 Act do. I do not know how that arose, but it seems to be very unjust. However, there it is. This, of course, is a Money Bill, and since the Minister told the Dáil that he had done all he could to get the best out of the Department of Finance, I suppose we must be satisfied. So far as I personally am concerned in regard to this Bill, I am satisfied that it should be supported.

I am sorry I cannot enter into a debate on the question raised by Senator Hayes, because I would, more or less, have to agree with most of his remarks.

There is nothing wrong about that.

I brought the remarks of members of the Dáil, who were in favour of the complete abolition of the Schedule, to the attention of the Government and, as I stated in the Dáil, they examined it critically and, I should say also sympathetically, but, in spite of the case made, it was eventually decided that they had gone as far as they were prepared to go, the result being the Schedule as it now appears. The other matter raised by Senator Hayes, as he no doubt is aware, is not one with which I could deal. That is a matter for another Department. As to the question that the Senator mentioned in respect to inequities that appeared to exist in reference to some officers of the Army receiving their pensions in full, while others were not receiving any, it would be just as truthful to say that there are men receiving pensions under the 1924 Act who resigned for a short period—a period of weeks—and rejoined and, in doing so under these circumstances, were entitled to their full military pensions.

Plus their salaries.

Plus whatever they were in receipt of. The men mentioned in the Dáil were in the main men who came in during the emergency, and were already in receipt of these military service pensions. Their case was on a par with that of the men I mentioned. Those had left the Army for a short period, and during that period had pensions awarded them, and continued to carry them, whereas the men who remained on, and were there for 20 years, will not be entitled to draw their pensions until they retire from the Army.

That includes officers on the Reserve.

Yes, officers on the Reserve are drawing pensions while on the Reserve. That is all I have to say in the matter except this: that I would be glad if the House would consider giving me the further stages of this Bill to-day, for the simple reason that a large number of men will benefit very considerably as a result of the Bill being given effect to. As I mentioned 2,004 men will benefit as a result of the complete abolition of the Schedule. If I could get the measure put through quickly, it is possible we will be able to get the Department officials to get after their job, and to see that effect is given to this proposal, I hope before Christmas, with the result that most of the lower grade men, who will be the first to be dealt with, will have something in the nature of a nest egg coming to them about the Christmas period. That is the only case I make for getting all stages now; otherwise it is not a matter of very much importance.

The Bill is a Money Bill, and the only thing that could be done would be to put down a recommendation and to argue it. But it is very difficult to argue with a person when you agree with him. Both the Minister and I are in agreement, but we cannot do anything about it. I do not see anything objectionable in the Minister's proposal, seeing that it is a certified Money Bill, to take the other stages to-day. If any objection were taken I would not be against it.

Question put and agreed to.
Agreed to take remaining stages now.
Bill passed through Committee without recommendation.
Question—"That the Bill be received for final consideration"—put and agreed to.
Question proposed: "That the Bill be returned to the Dáil."

I do not know anything about military pensions as military pensions, and I know extremely little about the Army, though I have quite a few friends in it. I have felt very strongly for a long time that there has been a tendency in many countries to treat men who gave voluntary service at a time of real emergency in a mean and niggardly way. It seems to me that if there are men who gave service to this country in pre-Treaty days, and who have pensions, and if they are so small that they require the old age pension, that is something to which the application of the words "nationally disgraceful" is not too strong. I speak with some knowledge as I knew a great many of the men, having come into contact with many when they were serving. I am not attacking the Minister, but I do not like the attitude we occasionally get, which virtually suggests that while it would be wise and right to go further the Government will not do so, and gives no reason. The Government is the servant of the Oireachtas, not its boss, and it is not enough to tell the Oireachtas that they think they ought to go further without giving a reason for not doing so. If the reason is financial then the Government should say so. The Government controls finances under Parliamentary practice by means of a money resolution. If there is a reason it should be given, but simply to say that they cannot see their way to go further is bad practice and undemocratic. The only reason I intervene is that I have a very strong feeling that in small countries, when a time of crisis arises, and when voluntary service is given without undue pressure,—in 99 cases out of 100 out of a definite sense of patriotism,—after these people have become old and their circumstances poor, to treat them niggardly is something unworthy of the State.

On the point raised by Senator Douglas, I should like to ask the Minister if it is not possible for him to insert a provision in this measure whereby a military service pension would not be taken into account when the holder is being considered as a claimant for an old age pension. If there is power to abate, I do not see why what I suggest could not be done in respect of those in receipt of small military service pensions. The Minister has at his disposal information as to the number of persons receiving pensions under a certain figure and the amount involved. Men went out, perhaps in late middle life, and were prepared to sacrifice their lives to make the country free and to enable our generation to live in peace. If those men have been unable to do more for themselves than would render them independent of the old age pension, I say that there is no appreciation of real patriotism on our part if we leave matters at that. When a community deal with high-minded patriots in that sort of fashion, it is questionable whether they can really remain free.

Would that not be a matter for the Department of Local Government and Public Health?

Not the matter I have raised.

I am afraid that the Senators who have spoken on this subject are not aware of a statement made by me in the Dáil during the passage of this Bill there. I am sure they know that, under the 1943 Act, members of the Old I.R.A. who participated in the Rising of 1916 are entitled to a special type of pension or benefit. If they are incapacitated by age, or physical or mental deficiency, and incapable of earning their own livelihood, they are awarded, provided their yearly means do not exceed a certain amount, a sum of, I think, £78, if they are single, and £97 10s. if they are married, with an additional sum in respect of each child under a certain age. In the Dáil, I stated that I proposed to apply that clause to the men of the later period— the men to whom Senator Douglas and Senator Baxter referred.

I was not aware of that statement.

It is no harm to make that clear. It is, in fact, a generous gesture. If these men are incapacitated by reason of age, or physical or mental infirmity, the question of their old age pension need not necessarily arise because it will be included in either of the sums to which I have referred—£78 or £97 10s.

Does that refer only to the men with pensions?

It will refer to any man who has a medal—any man with proved service.

Question put and agreed to.
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