Joan Burton (Dublin West, Labour)

Is the Minister not concerned that of 1,900 exemptions issued since 2003 in respect of foreign workers in Ireland in the circumstances described by the Minister, 1,400 were issued to Gama, the Turkish construction company at the centre of controversy? Is the Minister not concerned that these 1,400 exemptions were issued on foot of permits and that they offer a complete exemption from PRSI, which represents approximately 20% of labour costs? They also offer a parallel exemption as outlined by the Minister in his reply from tax on a PAYE basis. This means that Gama is at an immediate labour cost advantage over other employers, including Irish companies, of at least 25%. Given the value of the public sector contracts availed of by this company, it has achieved an advantage of at least €5 million and perhaps up to €15 million. This is not only a scandal but also a scam and a fraud on the taxpayer.

Is the Minister not concerned that this is a back door way, presumably found by those clever accountants and lawyers employed by Gama, to undermine the PRSI system and, in parallel, the PAYE system? Were these arrangements originated by the Department of Enterprise, Trade and Employment? Were the Revenue Commissioners, who are responsible for collecting PRSI and PAYE tax from employers, aware of the special exemptions for this company? Will the Minister order the Revenue Commissioners to carry out as soon as possible an investigation into this undermining of the PRSI and PAYE structures? We have enough tax scams without the need to create more.

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