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

10:50 am

Photo of Marie MoloneyMarie Moloney (Labour)
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I will be brief. I welcome the departmental officials and the Self-Employed Alliance Dundalk to the meeting. I apologise for being late and for missing Ms Mary Kennedy's presentation. I got a lesson in driving through Dublin today, as 15 miles in Dublin certainly is not like 15 miles in Killarney.

When the Minister herself and the departmental officials appeared before the joint committee in recent weeks, I raised the issue of the self-employed and I continue to so do today. I again ask that they be given the option to pay the contribution. Ms Kennedy may have referred to this issue in her presentation. Moreover, when people who were self-employed finally gain access to jobseeker's allowance, they are not allowed a credit contribution, which they need to ensure their pension in the future. This absolutely fascinates me and I ask that serious consideration be given to allowing such people their credit contribution when they draw jobseeker's allowance.

I can never understand the reason the family income supplement is not available to people who are self-employed. A little help sometimes can keep people going, including those who are self-employed, and this issue should be examined. All members know that self-employed people pay their tax, their PRSI and their employees' PRSI. The departmental officials have informed the joint committee in recent weeks that self-employed people's own contribution would have to increase to approximately 16% in order to derive any benefit but I am sure the benefits would be worth it. It would be just like taking on one additional person, for whom one would be paying the extra 10% or 12% to ensure one's own benefits were in order. When such individuals apply for benefits such as medical cards or the jobseeker's allowance, trying to get and provide figures involves a quagmire of bureaucracy. I ask the officials present to ensure that a memorandum is issued to all social welfare offices advising them they are not to ask people to deregister as self-employed because, regardless of what the witnesses might say here today, this does happen. Perhaps the creation of uniformity among the departmental offices around the country would prevent this from happening.

Many people who draw illness benefit or invalidity pension have a small farmholding and they pay PRSI and tax on the income from the farm. They might have a few dry cattle or whatever the case may be. When their accountant registers this income, it now emerges that they are drawing illness benefit while making self-employed contributions by paying PRSI. Consequently, they are in a lot of trouble with the Department and in some cases, the fraud squad has contacted such people, alleging they are working and drawing the benefit.

Two weeks ago I asked the officials for figures in respect of the overseas pensions being paid but I have not received anything to date. Consequently, they might provide me with an update in this regard.