Oireachtas Joint and Select Committees

Tuesday, 7 November 2017

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Finance Bill 2017: Committee Stage

6:00 pm

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Minister's commitment to publishing the report is welcome. I hope he will pass on that thought to his colleague, the Minister for Employment and Social Protection.

The Revenue Commissioners know there is a significant loss to the Exchequer through what is happening with bogus self-employment. Much of that may be contained in the report whenever it is published. Essentially, we are getting 4.5% as opposed to 14.75% plus from next year through the increase for certain employers in the training levy. It is a loss of 10.5% in PRSI which could be utilised both to make the system fairer, but also to improve it. I accept the Minister's bona fides in that he cares about people's cover for when circumstances change and how they may require social protection. It makes no sense, however, from the point of view of the overall economy to allow what is effectively a fraudulent system of bogus self-employment to grow.

People are devising more and more ways in which to push people into the path of self-employment. The consequence for the Social Insurance Fund and for the Revenue Commissioners, the collectors of income tax, PRSI and USC, is a significant loss of income. It particularly affects many young self-employed people who are struggling on lower salaries and wages and reduced terms and conditions than their employed colleagues. It is fundamentally unfair and destructive in terms of social justice.

The report in question has been ready for quite some time. I have no idea whether it is being revisited in some way or redacted because there are problems with some sectors or companies. However, it is unfair to those working, many working extremely hard, and this is what they get.

They are comparing their situation to that of their brother, sister or spouse who is an employee and has an income tax credit. Notwithstanding promises this could and would be done within a three year period, it does not seem that it will be looked after next year because the Minister has said the bar is so high. How was it that at a time when the economy was in a very early stage of recovery it was possible to increase the credit by a third? That was possible because a choice was made to give it to those who required it. There is a need to start eliminating some of the phoney stuff in the system in regard to self employment that does not play to people's advantage but, rather, to that of certain employers.