Labour to reduce money paid into the pensions fund to pay for spending increases!

Xterminator

(source Irish Times)

Publishing its economics document yesterday, Labour said it would spend an extra €1 billion on new roads between now and 2007, and €2.1 billion on better social welfare payments and €7 billion on health.
Reducing contributions to the National Pension Reserve Fund, from 1 per cent of Gross Domestic Product to 0.25 per cent for five years would fund the improvements in the health services, said Labour.

Labour moved quickly to head off criticism that the National Pension Fund proposals would impact on the pensions that will be available to public servants after 2025.
Its document stated: "All public sector pensions are 'defined benefit' pensions.
"This means that when public servants retire they receive a pension which is a proportion of their salary and which then increases in line with public pay thereafter. "This cannot be changed without negotiation with the public service."Labour is opposed to breaking the link between pay and pensions.

Given the current estimates of people living longer, thus increasing the no's of people relying on pension moneys, does it seem strange that Labour can fund their wish list from our pension fund (our taxes), without it affecting the levels of our pensions?

That a very interesting equation they have invented. Perhaps we should call it 'the bottomless well' policy?

They are spending the few bob we have set aside for our futures, to pay for New Roads, Welfare increases and incresed spending on Health?

Surely it would be less damaging to just increase the basic rate of tax by 1 or 2 p, than to raid the pension fund? Didn't they critisise the govnmt for doing the same thing in the recent budget?

Or are they afiad theyed be creamed in the election if they took the honest way of saying 'if you want better roads, healthcare and better paid unemployed, its going to cost you!'

X

Mailman

I suspect that they want to roll back individualisation but don't want to campaign on it and will want to introduce a number of pro-children policies. Maybe I'm giving them too much credit.
Taking from the pension fund while discouraging people from having having kids is reckless.

Victor

Originally posted by Mailman
I suspect that they want to roll back individualisation but don't want to campaign on it and will want to introduce a number of pro-children policies. Maybe I'm giving them too much credit.
Taking from the pension fund while discouraging people from having having kids is reckless.

Do "pro-children policies" "discourag[e] people from having having kids"? And seeing as individualisation is pro-single people, wouldn't rolling it back be a pro-children / pro-family policy.

Sand

Its just typical rainbow politics - theyre basically borrowing from future governments - by reducing the money available to pay pensions (One of the governments best ideas imo), while at the same time stating that the pensions cannot be altered without agreement - thus leaving a nice ticking time bomb for a future government which will have to deal with an ageing population and no funds to pay for it. Oh well, at least the taxi drivers got their compensation. Labour will just have to play it so theyll be in opposition when the storm breaks so they can score political points of the party dealing with their mistakes. The best part is "improvements" in the health service - classic stuff as it will more than likely vanish into wage packets rather than infrastructure.

Victor

Originally posted by Sand
Its just typical rainbow politics - theyre basically borrowing from future governments

And what do you call McCreevy "creative accounting" in this year's budget.

gandalf

To be honest lads and lassies anyone here who is relying on a state pension when they retire is going to be sorely disappointed. With the age profile of the workforce getting older by the time I retire there will be a hell of alot of pensioners around. I already have a pension going years and I think that may not even be enough.

I think that every party will eventually raid the pension fund, FF/PDs already have, Labour have admitted they will, we know FG have no real imagination so we can count them in too.

As regards individualisation I know that FG have said publically that they want to scrap it, it doesn't surprise me to hear Labour want to do the same.

I think having the present Government in power for another 5 years will be an even bigger disaster considering the mess they have made when things have been good.

Gandalf.

Mailman

Sorry, I'm thick. Are you agreeing with me?

rollback as in 'undo'

After posting that reply I saw an article on Ireland.com about Labour proposing a number of pro-children policies.