Pension cuts 'will cost exchequer'

Cutting old age pensions and services to the elderly will only result in a bigger cost to the exchequer in the long run, a meeting of retired people has heard.

Active Retirement Ireland president Tom O’Mahony told the group’s national council meeting that cuts to services for older people may yield short-term savings.

“However in the medium to longer term, these cuts will impact on the welfare of older people, with more requiring interventions like hospital care. Not only is this bad for older people, but it will result in a bigger expense on the exchequer into the future,” he said.

Mr O’Mahony said reasonable pension payments allow older people to enjoy a better quality of life, eat good-quality food, ensure their homes are warm and enjoy an occasional social outing.

“This all contributes to a healthier and happier older population.”

More than 250 people attended yesterday’s national council meeting in Dublin.

Mr O’Mahony said the growing retired population had lived through hard times before and had skills such as preparing household budgets, repairing clothes and growing vegetables. “These skills could usefully be transferred to the Celtic Tiger generation. “Indeed, a demand for these skills is already evident.”

He said active retirement associations were hosting knitting and sewing classes and offering their support to homework clubs, language classes for migrants and visiting schemes for sick and immobile people.

“Retired people can be an important resource in helping people to cope in recession. They are a resource waiting and wanting to be used, but we do have a price,” he said.

“We need the acknowledgement and support from central government to maintain our activity. It costs money to travel, host meetings and run events. Much of this basic infrastructure is threatened by the recommendations of the report of An Bord Snip Nua. It is vital that the Government, in this forthcoming budget, does not immobilise the huge reserve of retired people for short-term savings,” he warned.

Delegates welcomed the assurance from the Minister for State with responsibility for older people, Áine Brady, that the Government had committed itself to the Rural Transport Scheme.

The McCarthy report had suggested ceasing funding for the Rural Transport Scheme, but Ms Brady said the revised Programme for Government included a commitment to it.