Michael Mullins (Fine Gael) | Oireachtas source

I join in welcoming Mr. Kelly and Ms Byrne. This has been an interesting exchange and it is important they attended this committee to highlight some of the issues we should focus on. I support them strongly in their grievance that self-employed persons would be penalised if they earn more than €100,000 while somebody who works for the State or a company and earns a salary of over €100,000 is not discriminated against in the same way. There is no reason this should happen and it is certainly a disincentive to people becoming entrepreneurs. We want to do everything possible to promote entrepreneurship and to encourage as many people as possible to take that risk.

Following the collapse of the construction sector, many of those who had taken risks and employed significant numbers of people found that following the collapse of their business, their employees were in a position to get social welfare while those who took the risk and put their livelihoods and resources on the line got nothing from the State unless they were almost destitute. After being means tested some of them got some employment assistance, but if their spouses were working, there was a limit to what they could get. This issue needs to be addressed.

The witnesses mentioned there was no support through the LEOs for lifestyle businesses, but pointed to the fact that somebody on social welfare who was starting a lifestyle business would have their social welfare payment protected for up to two years. Can they suggest how that anomaly might be addressed or how it could be dealt with?