Oireachtas Joint and Select Committees

Wednesday, 26 June 2013

Committee on Education and Social Protection: Select Sub-Committee on Social Protection

Estimates for Public Services 2013
Vote 37 - Social Protection (Revised)

3:10 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour) | Oireachtas source

I assure the Deputy that politicians who canvassed recently in County Meath will know that this is a very big issue. During the boom many involved in the construction and other industries who traditionally worked as employees found themselves working as contractors and subcontractors. In many cases, they did not want to be self-employed contractors, but this was necessary in order to take up the available opportunities. The expert group's report on the issue has been recently received by the Department and we are examining it. An issue arises from the review of the actuarial fund. Self-employed persons pay at a rate of 4%, for which they receive retirement pension and widow's-widower's or partner's pensions and retirement payments. That represents very good value. Extending this to include other benefits will require a contribution sufficient to cover the cost over time. I am glad that the Deputy has acknowledged that a great many people who lost their self-employment status qualify after a period of time for social welfare payments. As he said, it is very important assistance to the individuals concerned. They are usually in the 38 to 52 year age group and homeowners and their children are young; therefore, they have many commitments. We want to help them to keep the roof over their heads.

The chairperson of the advisory group briefed the Cabinet sub-committee on economic recovery on how the Department was assisting many former self-employed persons to access benefits, depending on how precarious their situation was. The chairperson stated she was surprised at the number in that position.

We must plan for the future. Those who are graduating this year, at both second and third level, are facing a world where they will most likely go through various stages in their careers, whether as traditional employees, contractors or subcontractors, or as entrepreneurs who set up their own businesses.

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