FIANNA FÁIL TD Noel O’Flynn has threatened to resign the party whip and vote against the budget if it contains proposals to reduce the old-age pension.
Mr O’Flynn said yesterday that those who depended on State pensions had worked all their lives and made huge contributions to society. Any reduction in either the contributory or non-contributory pension would result in him withdrawing support for the Government.
Mr O’Flynn claimed he was one of five or six Fianna Fáil TDs who held similar views.
Two other Fianna Fáil TDs, Chris Andrews and Mary O’Rourke, said yesterday they were opposed to any reductions in the State pension. The Green Party, through deputy leader Mary White, has also stated publicly that it is opposed to pension cuts.
Mr O’Flynn, a TD for Cork North Central, said he had made clear his views to the Minister for Finance a number of weeks ago.
If the Opposition wins the Donegal South West byelection on November 25th, the Government’s majority, with the support of two Independents, will be reduced to two. If Mr O’Flynn were to vote against the Government on the budget it would mean the budget would be decided on the casting vote of Ceann Comhairle Seamus Kirk.
Mr O’Flynn said: “I cannot accept that element of the budget. I hope it will not be included. If it is included I will resign the whip on the day and vote against it.”
His announcement came as a Government spokesman said a cut in pensions could not be ruled out of the budget arithmetic.
“The Government is carefully looking at all areas of public expenditure to see if savings can be gained, and that includes pensions. Pensions paid by the State are a significant area of expenditure by the State – and they cost over €9 billion in 2010 on a gross basis.”
Contributory old age pensions will account for €5 billion of the total this year, with non-contributory accounting for a further €1 billion. Some €2.8 billion will be paid in public service pensions. In all, the pension bill comprises 15 per cent of gross current expenditure.
Yesterday, Minister for Justice Dermot Ahern denied the Cabinet was split over the prospect of pension cuts in the budget.
As Green Party and Fianna Fáil Ministers of State spoke in favour of protecting pensioners, Mr Ahern said nothing could be ruled out at this stage, and he had not heard any Cabinet members speak out on the subject.
“There’s no Cabinet split; we are discussing all of these issues,” he told reporters in Brussels on the sidelines of an EU justice ministers’ meeting.
He made it clear, however, that social welfare and the taxation of income not currently in the tax net was in the budget frame.
“When you’re dealing with an overall cake of €50 billion and €22 billion of that is social welfare obviously it’s an area you can’t say you’re not going to cut in.”
Green Party deputy leader Ms White said she was raising a “red flag” to Fianna Fáil over the issue, saying pensions should not be cut.
“We should send a strong signal in this budget, whatever happens, that fair is worth fighting for.”
Fianna Fáil TD Mary O’Rourke said she was totally against any cuts to the non-contributory pension.
“We cannot touch it. Old people cannot raise money for themselves. Young people can do a nixer,” she said.
Sinn Féin’s Aengus Ó Snodaigh called on Ms White to back up her call for pensions to be protected by committing to vote against the budget.
