Oireachtas Joint and Select Committees

Wednesday, 3 October 2012

Joint Oireachtas Committee on Education and Social Protection

Policy to Minimise Unemployment: Discussion with Department of Social Protection

10:10 am

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I refer to a jobseeker's system for self-employed people who do not have the necessary contributions - in other words, self-employed people who are looking for jobseeker's allowance. There is a widespread perception that once somebody is self-employed, he or she can forget about looking for the allowance. I am not familiar with other parts of the country but, in the Limerick area, that perception is being encouraged and being promoted by the interaction people have with the local social welfare office. I am sorry to have to say that but I have to say it clearly and bluntly.

People have come to my constituency clinics and said, "We have been in touch with the labour exchange in Limerick and because we are self-employed we have been told our chances are virtually nil." There is a perception that a person who has been self-employed is automatically disbarred from jobseeker's allowance, regardless of his or her circumstances.

One of the delegates has cited the rule applying to someone who has been self-employed and whose business is gone when he or she applies for jobseeker's allowance. The rule states that, in general, the means calculated against him or her "will take account of the level of earnings in the last 12 months". A self-employed person whose business goes down the tubes has no income. Such a person has no income but is debarred from jobseeker's allowance because he or she had income in the 12 months up to the time the business failed. That seems to be perverse, to say the least. In fairness, the delegate went on to say, "in the current climate account is taken of the downward trend in the economy." That might be done on paper, but the reality is different.

Reference was made to the advisory group on tax and social welfare. Over the weekend we heard some of its proposals which had mysteriously made their way out of the Department and into the press. I note that the group was also advising on social insurance for the self-employed. Now that part of the report is in the public domain. Perhaps the officials might share with us what the group had to say about providing insurance for the self-employed. I note that it has also been advising on disability and domiciliary care allowances. Perhaps we might receive some information on its deliberations on these weighty matters.