Séamus Brennan (Dublin South, Fianna Fail)

The total number of exemptions issued since 1998 is 2,449. Of these, Gama received 1,416. The reference to a random sample was made in respect of the Department's approach in contacting authorities overseas. The Department decided to take a random sample of 40 of Gama's 1,416 employees but, disappointingly, has yet to hear from the social security ministry in the country concerned. We will follow up the matter to ensure we receive a response.

It is important not to leave the impression that exemption from PRSI represents a loss to the Exchequer. The system also works in reverse. Where an Irish company is working abroad, it does not pay PRSI in respect of its Irish employees if it is confirmed that it is being paid here. The principle is that a company pays PRSI in one country or another, but not in both. This system has been in place for decades — it is not a recent measure — to avoid double taxation.

I have a copy of the inspector's report commissioned by the Minister for Enterprise, Trade and Employment. My Department is examining it very carefully to determine whether breaches of social welfare legislation have taken place. It should be noted that the purpose of the exemptions system is to ensure that people do not get caught for PRSI in more than one country. We seek to ensure that no one slips through the net.

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