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Seanad Éireann Vol. 259 Wednesday, No. 9 11 July 2018 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES SEANAD ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Insert Date Here 11/07/2018A00100Business of Seanad 684 11/07/2018A00300Commencement Matters 685 11/07/2018A00350State Pensions Reform 685 11/07/2018B00300North-South Interconnector 687 11/07/2018C00350Child and Adolescent Mental Health Services 689 11/07/2018D02800Residential Care 693 11/07/2018G00050Order of Business 695 11/07/2018M00350European Production and Preservation Orders for Electronic Evidence in Criminal Matters: Motion 708 11/07/2018O00100Traveller Culture and History in Education Bill 2018: Second Stage 708 11/07/2018Q00300Business of Seanad 712 11/07/2018Q00700Traveller Culture and History in Education Bill 2018: Second Stage (Resumed) 712 11/07/2018BB00100Situation in Palestine: Statements 728 11/07/2018GG01700Business of Seanad 741 11/07/2018GG02000Situation in Palestine: Statements (Resumed) 741 11/07/2018JJ00350Business of Seanad 747 11/07/2018JJ01050Situation in Palestine: Statements (Resumed) 748 11/07/2018MM00200Control of Economic Activity (Occupied Territories) Bill 2018: Second Stage (Resumed) 753 11/07/2018OO00500Intoxicating Liquor (Breweries and Distilleries) Bill 2016: Second Stage 758 11/07/2018QQ00200Visit of Maltese Delegation 761 11/07/2018QQ00400Intoxicating Liquor (Breweries and Distilleries) Bill 2016: Second Stage (Resumed) 762 11/07/2018TT01000Intoxicating Liquor (Breweries and Distilleries) Bill 2016: Committee and Remaining Stages 769 11/07/2018UU01400Judicial Appointments Commission Bill 2017: Committee Stage (Resumed) 772 11/07/2018AAA00050Business of Seanad 779 11/07/2018AAA00400Planning and Development (Amendment) Bill 2016: Motions 779 11/07/2018DDD02100Heritage Bill 2016: [Seanad Bill amended by the Dáil] Report and Final Stages 787 SEANAD ÉIREANN Dé Céadaoin, 11 Iúil 2018 Wednesday, 11 July 2018 Chuaigh an Leas-Chathaoirleach i gceannas ar 1030 am Machnamh agus Paidir. Reflection and Prayer. 11/07/2018A00100Business of Seanad 11/07/2018A00200An Leas-Chathaoirleach: I have received notice from Senator Martin Conway that, on the motion for the Commencement of the House today, he proposes to raise the following matter: The need for the Minister for Employment Affairs and Social Protection to consider uni- laterally restoring the State pension guidelines which applied prior to budget 2012 I have also received notice from Senator Robbie Gallagher of the following matter: The need for the Minister for Communications, Climate Action and Environment to outline the current position regarding the proposal by EirGrid to construct the North-South interconnector I have also received notice from Senator Máire Devine of the following matter: The need for the Minister for Health to provide an update on the closure of the day ser- vice at the Linn Dara CAMHS, Dublin 10 I have also received notice from Senator Colm Burke of the following matter: The need for the Minister for Health to establish a forum on long-term residential care I have also received notice from Senator Kevin Humphreys of the following matter: The need for the Minister for Justice and Equality to consider introducing a dedicated transport policing service across the public transport system I have also received notice from Senator Fintan Warfield of the following matter: The need for the Minister for Justice and Equality to introduce hate crime legislation I have also received notice from Senator Frank Feighan of the following matter: 684 11 July 2018 The need for the Minister for Foreign Affairs and Trade to provide an update on the work of the Integrated Education Fund and the plans for the fund The matters raised by the Senators are suitable for discussion and I have selected Senators Martin Conway, Gallagher, Devine and Colm Burke and they will be taken now The other Senators may give notice on another day of the matters that they wish to raise 11/07/2018A00300Commencement Matters 11/07/2018A00350State Pensions Reform 11/07/2018A00400Senator Martin Conway: I apologise for being slightly late I have come directly from a meeting of the Joint Oireachtas Committee on Justice and Equality I welcome the Minister of State, Deputy Jim Daly, to the House I raise this Commencement matter because there is an inequity in the system Pay restora- tion is a fundamental principle across society, whether in the private or public sector Many members of the public took a hit from 2008 or 2009 until 2014 or 2015 and their pay is now gradually being restored There have been numerous examples of pay restoration, in particular across the public sector It is likely that full pay restoration will be achieved in the next budget or the one thereafter However, in budget 2012 the pension guidelines, entitlements, structures and so on were changed for a group of pensioners who, prior to 2012, had a legitimate expectation to a specific level of pension entitlement when they retired Under the new guidelines, many of those born in 1948 lost benefits to which they would have been entitled had they been born a couple of years later. A specific number of people have been affected by the changes. The entire cost of reverting to the pre-budget 2012 guidelines would be approximately €270 million. An inequity has been created by the changes. The Minister for Employment Affairs and Social Protection, Deputy Regina Doherty, should consider reverting to the pre-budget 2012 guidelines. Doing so would not open a floodgate but, rather, help a specific number of people at a cost of €270 million I do not ask for the entitlements to be backdated but, rather, that the former level of benefit now be restored. If that cannot be done immediately, I ask that a timeline for such be put in place The Department is fully aware of the circumstances of the issue because a constituent of mine has gone to the trouble of researching the matter, putting the figures together and making a case to the Department Parliamentary questions on the matter have been tabled by Deputies The case put forward by my constituent is fair and well articulated This is a question of equity and fairness I sincerely hope the Minister, Deputy Regina Doherty, will right the wrong done to these people, who have paid their taxes, served their country well and done their duty, or at least give a timeframe for that to be done 11/07/2018A00500Minister of State at the Department of Health (Deputy Jim Daly): I thank Senator Conway for giving me the opportunity to address this issue on behalf of the Minister, Deputy Regina Doherty The current rate bands applying to the State pension were introduced from September 2012, replacing previous rates introduced in 2000, and more accurately reflect the 685 Seanad Éireann social insurance contribution history of a person A reversal of the rate bands for post-2012 pensioners to the 2000-2012 rate band percentages would carry an estimated cost of €73 million in 2018, including inflows from other payments such as the non-contributory State pension and increases for qualified adults, and rise at a rate of €10 million to €12 million per annum. That would mean an extra cost of approximately €85 million in 2019 and €97 million in 2020 Better-off pensioners who do not qualify for means-tested pension payments and did not make sufficient contributions to the Social Insurance Fund to qualify for a full-rate contributory pension would be the main beneficiaries of a reversal of the changes. Prior to the introduction of the current rate bands, a person with an average of 20 pay-related social insurance, PRSI, contributions per year over his or her working life received a weekly State pension of only €450 less than a person with a yearly average of 48 to 52 contributions The Government does not propose the reversal of the rate band changes Rather, it intends to introduce a total contributions approach to establish the level of entitlement for all new contributory State pension claims form 2020 onwards This is currently the subject of a public consultation which stays open until 3 September and is available on the Department’s website The total contribution approach, TCA, will ensure that the totality of a person’s social insurance contributions, as opposed to the timing of them, will determine their final pension outcome. In particular, it will benefit people whose work history includes an extended period outside the paid workplace while raising families or in a full-time caring role The roadmap for pensions reform
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