Kenny says pension cut for public servants a first step

TAOISEACH Enda Kenny has defended the level of cuts introduced for top public service pensions and insisted the Government’s action on this “was never meant to be the answer to all our problems”.

He rejected claims by Sinn Féin leader Gerry Adams that instead of tackling the issue as promised, all the Taoiseach had done was “to add insult to injury”.

“We have a Constitution under which people have specific rights,” Mr Kenny said. The move was “the first step in a broad process” to cut pensions above €60,000 by 12 per cent and those above €100,000 by 20 per cent, he added.

Minister for Public Expenditure and Reform Brendan Howlin “has at least had the courage to begin a process of reduction”.

Mr Adams said: “The high flyers have been left with huge pensions that are being paid with the people’s money. Former taoisigh remain on public pensions of €147,000 a year.”

He said the Taoiseach had promised “an elephant” but “Minister Howlin farted and produced a mouse”. The Government was contemplating cuts to child benefit but there would be no real cuts for “the golden circle”, he added.

Legislation was introduced in the Dáil to cut top-level pensions above €100,000 and affects 31 former politicians, saving an estimated €400,000.

Mr Kenny insisted the Government had not been afraid to tackle a situation where “extraordinary pensions were paid to a small number”. He claimed Mr Adams’s “ranting” gave the impression that if all pensions above €100,000 were cut, “our national financial crisis would be solved”.

Mr Adams referred to the public sector strike in Britain and Northern Ireland over pensions and said there were many people being attacked by the Tories and not just in the North.

“In this State our own little Tory government is also inflicting a similar inequality on citizens.”

Mr Kenny hit back and said Mr Adams had had “many dealings with the Tories and was not afraid to take their money when it was needed for good causes in Northern Ireland”.

The Taoiseach said the latest move on pensions “is just one of the decisions the Government has taken in respect of higher-paid public servants”. It was the start of a process on the part of the Government to create a sense of fairness.

Mr Adams asked that if this was the start of a process, would the Taoiseach give a commitment that “the exorbitant pensions for those who are still working will be stopped and that you will cap all other public pensions?”

Mr Kenny said that with the pension cuts and other charges, a pension of €125,000 “will be down to €71,000”.