Old age pension cut in budget still open
While no decision was made on pensions yet, nobody could be considered to be exempt from the bid to plug the €6 billion budget gap, he warned. But the Government would try to spread the pain evenly, he said.
Coalition partner, the Green party has characterised the issue as a “red flag” one, with deputy leader Mary White saying pensions should not be cut under any circumstances.
Numerous TDs are opposed to a cut while Fianna Fáil backbencher Noel O’Flynn said he would vote against the budget if either the contributory or non contributory pension was cut.
“I’m not in a position to support the budget if part of that budget will have a reduction in the old age pension. Other cuts in other welfare payments I can accept because of the tight fiscal constraints that we’re under, but I can’t accept a drop in the old age pension,” the Cork North Central TD said.
Fianna Fáil TD Mary O’Rourke said she was totally against any reduction in the non-contributory old age pension.
“We cannot touch it,” she told RTÉ. However, she said even if the pension was cut, she would still vote for the budget.
But Mr Ahern said there was no difference of opinion at the cabinet table, adding that Ms O’Rourke – aunt of Finance Minister Brian Lenihan – was a former minister.
The Justice Minister said he expects there will be at least two more meetings this week on the budget following Sunday’s three and a half hour session.
“Nothing is agreed until everything is agreed. We are discussing all these issues rationally,” he said, adding that the process was taking a long time because they had to fully judge the impact of any change they made to the draft.
They were trying to affect people on the edge of society the least. “But when we have to find €6bn you cannot say that nobody will be exempt. You have to look at the situation when 50% of income is not taxed – that has to come in to it too.”
Meanwhile, the Older & Bolder alliance of various representative groups said it would be “redoubling its efforts” over the coming weeks to prevent any pension cut.
“It’s clear from the statements of a number of ministers that no decisions have been taken to protect the state pension and it is still a distinct possibility that the pension and the other income supports for older people may yet be cut,” said spokeswoman, Patricia Conboy. “Therefore, it is vital that our campaign redoubles its efforts over the coming weeks and we will be asking our local groups to continue to lobby their local politicians until we get a clear commitment from the Government itself that the state pension won’t be cut.”
