Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

This is a complex matter and there have been huge changes in terms of practices on the ground. Many principal contractors will not now allow workers or tradesmen to go on site unless they are registered under the RCT system. The days of being employed by a builder in the normal sense with a contract of employment are coming to an end, if they have not yet ended completely. It has very serious implications for the individuals concerned as the Minister outlined in terms of sick pay, holiday entitlement and an absence of PRSI returns being made for them. It is a serious issue for Revenue also because it increases the risk of tax revenue being lost.

I welcome the consultation exercise that is going to be undertaken. It should be advertised widely among stakeholders and ordinary workers who may not look out for these advertisements. We will all do our best to advertise and promote the consultation because people are certainly being taken advantage of. It is leading to a great deal of personal hardship for people who do not fully understand the tax system. They are going on site and building up tax liabilities themselves and are unaware of the fact that many benefits are being denied them on foot of their new status. This is an important issue and I welcome the Minister's initiative on it.