Friday 18 October 2019

Government wants pension scheme for new public sector workers - Howlin

Speech: Public Expenditure Minister Brendan Howlin
Speech: Public Expenditure Minister Brendan Howlin

Daniel McConnell and Niall O'Connor

The Government favours a reintroduction of a National Pension Reserve Fund for public sector workers, Minister Brendan Howlin has said.

He said that he "bluntly" favours setting up a similar fund that existed previously which saw 1pc of GDP taken from the tax take into a fund which had amounted to €25bn before it was raided by the previous Government.

Speaking at a press conference this evening, Mr Howlin said demographic pressures present a long term challenge to the State.

He added that his pension scheme for new public sector workers  would reduce the overall cost of funding pension schemes by 35pc overtime.

Meanwhile, Mr Noonan signalled that Ireland's chances of getting a deal on its bank debt from Europe have all but diminished.

Asked if he now favours selling its stake in the State-owned AIB and PTSB, Mr Noonan said while "nothing is off the table" he is tending towards best value for the taxpayer.

He said any decision about a possible sale of AIB, which the taxpayer is 99pc shareholder of, will not happen until the back end of the year or early next year.

He added any sale will not be determined by the political calendar, a clear reference to the pending General Election.

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