Oireachtas Joint and Select Committees

Thursday, 14 February 2019

Joint Oireachtas Committee on Social Protection

Bogus Self-Employment: Discussion (Resumed)

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

The loss to the State is not simply about the individual's experience. Sectoral orders are a way to ensure that whatever way he or she is categorised, the person can access the basic provision. However, there is a loss to the State. We know this from the radically different PRSI contributions that are coming through from those who are self-employed and those who are not.

I refer again to the issue of public procurement. There is also an issue for the State as an employer. There are a number of areas, including early childcare workers and other areas like that, where the State could do much better. Is the scope going to be within the criteria in the design of requests for tenders and not necessarily within clauses, which has largely been the focus? I had always thought of it in reverse and I know that comes up against the European directives, which require that a tenderer should not have a number of people in need of FIS as that is, in effect, the State having to subsidise a bad employer rather employing a good one. There are problems when one hits that as it is a payment linked to Ireland. However, one could require that a certain number of workers would be employees, whether in Ireland or elsewhere. Would a requirement that they be categorised as employees fit within the European procurement framework? It is reasonable if the most economically advantageous tender is the overarching goal. Certainly, it fits within that.

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