Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The Deputy will be aware that, earlier this year, my Department, along with the Department of Employment Affairs and Social Protection, published a report entitled, "The use of intermediary-type structures and self-employment arrangements: implications for social insurance and tax revenues". He will also be aware that this report was informed by a public consultation.

The report noted that the development of personal service companies and managed service companies created a triangular employment relationship where the services of a worker are secured through a third entity, thereby distancing the employer from direct engagement with the worker under either a contract of service or a contract for services. This created complexities in establishing the rights and responsibilities of each of the parties with regard to tax, social insurance and employment rights. I might add that such arrangements are not peculiar to the entertainment sector.

Some have argued that the avoidance of tax and social insurance obligations is the primary motivation for the use of personal service companies and managed service companies, and that workers are increasingly being directed by employers to supply their labour through these types of intermediaries. Disguising employment in this manner also enables employers to avoid some employment law obligations and can undermine the employment rights of the workers concerned.

The report found that the majority of the loss to the Exchequer in these circumstances was in the form of PRSI revenue rather than tax and, as Minister for Finance, I share the Deputy’s concern that such structures could be put in place for these purposes.

However, I am satisfied that the Revenue Commissioners are working closely with their colleagues, including the Department of Employment Affairs and Social Protection and other agencies, to deal with this issue. I do not believe the production of a report so soon after the publication of the one I have described would be of benefit. If the Revenue Commissioners or the Department of Employment Affairs and Social Protection recommend the introduction of legislation to deal with a potential risk in regard to the laws on social insurance revenue, I will be happy to act on that recommendation. To date, no such recommendation has been made.

The point made by the Deputy in regard to RTÉ is a matter for that organisation. I am aware that RTÉ has carried out a review of this matter and it has acknowledged that as many as 157 media professionals may have been misclassified. It has indicated it has new policy and guidelines in place and that it will commence a review of individual contracts, with a view to having this work completed by the end of this year.