Mr. Denis Dolan:

The Self-Employed Alliance from Dundalk would like to thank the committee for inviting us back to further highlight our case. It is clear that the self-employed are treated in an unequal, unfair and inequitable way compared to the PAYE sector. We all strive, want, need and aspire to a fair, equal, just and transparent working society for all without any discrimination or a two tier-society yet as we outlined in detail in our previous submission, inequality and discrimination exists to this day for self-employed individuals. They were continuing to come knocking on our door up to 24 March 2014.

In the past six weeks, one of our members had to let his only two members of staff go after two years working for him. They both went to the Department of Social Protection, registered and were in receipt of all supports and services within a very short period enabling them to sustain some semblance of a lifestyle. When the self-employed owner whose business had ceased went to the same Department of Social Protection office seeking help and support, he got nothing. Essentially, he was interrogated and asked about potential assets but he had none other than the family home. He was asked for the two previous years' accounts to allow them be scrutinised. He was informed that after some time an assessment officer would be appointed to examine his circumstances, etc. The individual literally has got nothing. All his funding and effort went into the business yet, unfortunately, his business failed. During the course of his time in business this person paid all his rent, rates, staff, etc. That has generated revenue for staff families, which in turn circulated to the benefit of the local economy. The same individual has been left high and dry, and quite clearly is treated as a second class citizen.

The system in its current form is not fit for purpose and clearly treats self-employed people in a discriminatory and unequal way.

Clearly there are simple and effective measures that can be implemented immediately to provide a level playing field.

It seems many self-employed are deemed to be great when things are going well, generating employment and revenue for all concerned as is pointed out in various CSO reports, but if suddenly that self-employed individual hits hard times and ceases trading, all supports and services are pulled and a barrage of unnecessary hurdles are put in place.

The enormous contribution self-employed people bring to the social and economic fabric of our society is acknowledged. I will give a snapshot of the contribution small and micro businesses bring to the Irish economy. Small workplaces employing fewer than 50 people account for just over 1.25 million, 60% of the Irish workforce - 940,000 employees, 209,000 self-employed and 104,600 self-employed with employees.

Small enterprises employing fewer than 50 people generated more than half of the total turnover in the service sector. Turnover of small service sector enterprises increased by 65% between 2000 and 2004 to reach almost €74 billion in revenues based on CSO figures, a not insignificant amount. Small enterprises in the service sector employ an average of five people and have an average turnover of just under €900,000. In the second quarter of 2006 three quarters of all people in employment in small work places were classified as employees. Just over 8% were classified as self-employed with paid employees. Nearly 17% were self-employed without any paid employees. Of the 4,418 enterprises, employing three or more people in Ireland, 81% accounted for small industrial enterprises. Almost half of these enterprises had fewer than ten people employed.

Our alliance, representing the self-employed and its ever-growing numbers, predominately represents what I would call self-employed micro businesses employing approximately three to five people. We feel it is somewhat disingenuous to bundle us in with the CSO definition of having up to 50 employees. The dynamic of a micro business employing three to five people is significantly different from those small business employing ten people or more. Therefore a distinction or a category change is urgently required.

Although the valuable contribution of the self-employed to the Irish economy is acknowledged, nothing has changed and glaring inequalities remain. In fact things on the horizon may make things worse for the self-employed, notably the looming threat from the banks, which has in fact passed the threat stage as banks are now stopping loans and calling in overdrafts, targeting in particular small and micro businesses. Allowing this to happen will have dire consequences across the entire social and economic infrastructure of Ireland, especially bearing in mind the contribution of the self-employed as a whole. We should not forget that the taxpayers ultimately bailed out the banks.

On 19 March I called to the social welfare office in an effort to establish what supports are available to a self-employed person. The level of ignorance, and the lack of knowledge and transparency are alarming. Not only did I encounter this, but having spoken to many of our members it is clear that little or nothing has changed even though in October 2012 we were told social welfare offices could and would provide pertinent information. When I requested a copy of the publication, Your Social Security Rights in Ireland - A guide for EU Citizens from the Department of Social Protection, I was met with blank stares. Having eventually located it on the web all I can see are two minuscule general references to self-employed with no detailed information whatsoever.

The Government is encouraging more and more people to embrace the self-employed route and entrepreneurial spirit. While we welcome this, some of the more cynical might suggest it is a safety valve because if these enterprise fail, then as legislation stands the Government has to give them little or nothing. As we all know, the percentage of start-up failures is very high. So with few if any support structures in place for the self-employed it is akin to walking the high wire without a safety net. The current clarion call by the politicians encouraging people into the self-employed route should come with a clear health and safety warning

Since we submitted our 17 reasons or disadvantages for the self-employed nothing seems to have changed and as pointed out things are nominally worse.