FF briefing:There was charge and counter-charge between the two largest parties as a political row blew up yesterday on the issue of pensions. Claims by Fine Gael's Richard Bruton that Fianna Fáil proposals for a new SSIA-type pension scheme had blown a "black hole" in their economic plans were dismissed as "bluster" by Minister for Social and Family Affairs Séamus Brennan, who challenged him to a debate on the issue.
At a news conference in his party's election headquarters in Dublin Mr Brennan said that the proposed pension scheme would be "much the same" as the present SSIA, with the Government contributing one euro for every four invested by the account-holder.
Asked when he had started working on this idea, he replied: "About 2½ years ago."
The new scheme would be designed in consultation with the social partners and in the context of the planned Green Paper on pensions.
At present, more than 95,000 people have Personal Retirement Savings Accounts (PRSAs). An SSIA-type scheme, backed up by a high-profile promotion campaign, would encourage far greater numbers of people to invest in pensions. "If you're on a PRSA I don't see why you couldn't move to this," the Minister said.
In addition, the State pension would be increased to at least €300 per week by 2012. Mr Brennan said that this had been costed at €513 million over a five-year period.
Fianna Fáil would also ensure that employees in the private sector could continue working until the age of 70 if they wished.
"People in their sixties need choices," he said. "One policy area where we give way to nobody is our care for older people.
Asked if he was making a special bid for the "grey vote", Mr Brennan replied: "We are asking middle-aged and older people who care about their pensions to vote for Fianna Fáil."
In a statement afterwards, Fine Gael deputy leader and economic spokesman Richard Bruton said that Mr Brennan had "given no details or costing" on the SSIA pension scheme and there was now a "massive black hole" in Fianna Fáil's economic plans.
"No provision for this scheme was made in their economic and budgetary plan published two weeks ago. However, Fine Gael were advised by the Department of Finance that a similar SSIA-type scheme proposed by the Progressive Democrats (€1 for every €2 contributed) would cost at least €450 million per year."
Mr Bruton added: "Either way, Fianna Fáil is making pension promises that it has no intention of keeping, or else, in an act of desperation, it has just blown a half-billion euro hole in its budgetary plans."
This evoked a counter-blast from Mr Brennan, accusing Fine Gael of bluster. "Their claim of a black hole is an empty soundbite from a party which has refused to respond to even the most basic questions about their financial plans. If Richard Bruton is willing to end their silence on pension policy, then I'll meet him anytime he wants for a full debate."
The Minister's statement continued: "On the new SSIA-type pension scheme we have been very clear. We want to introduce it this year if we can get agreement of the social partners, because it will fundamentally affect them. In our framework, it fits within the context of the existing €2.5 billion per annum which goes on pension tax relief. If more is available, then we'll go much further."
