Ray Butler (Meath West, Fine Gael) | Oireachtas source

I have discussed this matter with the Minister for Finance. A voluntary contribution will not work. The contribution would have to be mandatory. The Minister has agreed to the introduction of a contribution of 0.25% for the first couple of years. My argument is that a self-employed person who is told by his or her accountant that he or she is required to pay X amount of income tax, or, if not making a profit, pay tax on drawings could opt to have 0.25% of that money paid in PRSI to ensure he or she is protected in terms of income to support his or her family and to pay the mortgage. It is common sense. The witnesses are suggesting that the contribution be voluntary. However, nothing voluntary has ever worked out in this country. Let us be honest and call a spade a spade.

I have been visited at my constituency by many self-employed persons, some of whom were men who had worked all of their lives and as a result of the recession became unemployed. The fear and desolation in their faces was awful. On top of this, because they were self-employed there were entitled to nothing. Let us be honest, some of these people went on to do awful things to themselves. We must put in place something to assist the self-employed and whatever is put in place must be mandatory. One quarter of one per cent will not make much difference in the longer term.

It was mentioned earlier that this could result in the loss of jobs. That is not true. As the economy improves we can increase the contribution. It is important a new system is put in place.