Michael Moynihan (Cork North West, Fianna Fail)

I am delighted to have an opportunity to speak on the Bill. I have serious concerns about farm assistance. I want to raise an issue that is before the Department of Social Protection at present, which is that of self-employed people who have found themselves without work in recent years but are not entitled to social welfare. A case was taken in the United Kingdom in this regard. I think the United Kingdom and Ireland are the only two countries with S and A class contributions. I understand a case has been taken through the UK system which is being examined by the Attorney General here. One case concerns a small company, of which a husband and wife are directors and sole traders. The contribution charged on their accounts is incorrect. It was put down as an S class contribution. My understanding is that the advice given to the Department is that it should have been an A class contribution. I also understand the Department and the Minister have been advised on this issue.

This is a serious matter across the country and it has huge implications. Every practising politician in this House, at whatever level, has come across people who have gone to the local social welfare office and found that, because their business has ceased trading, they have no entitlements. I ask the Minister of State to take this matter back to the Minister for consideration. In her reply to the debate, or on Report and Final Stages, the Minister might clarify this issue which concerns the self-employed. As I said, my understanding is that Ireland and the United Kingdom are the only two countries in the western world that are out of sync on this matter. I believe, however, the position has been rectified in the United Kingdom. There is also an implication that the company directors should have paid PRSI, the S class contribution, and employer's and employee's contributions would also have to be paid. This is a serious issue which needs to be clarified because it affects these vulnerable individuals.

I do not intend to trade comments across the floor of the House on the Social Welfare Bill, but a number of people have been badly served by it. This is particularly so with regard to family income supplement and the carer's allowance disregard. We have had a discussion this morning on carer's allowance, which I acknowledge has been greatly increased in recent years. There was always a sense at Government level that carers should be further looked after. When the allowance started, it was from a very low base. Carer's benefit was introduced later, in 2001-02, for a period of two years to allow persons to take time off, and a large number of people have benefited from it. Anything concerning the carer's allowance disregard should be re-examined because it only a small number of people are affected. Government speakers have said the rates have been maintained, but the Government has also sneaked in individual cuts or individual schemes have been removed.

Many groups and participants in community employment schemes have contacted me in recent days. They are saying that while the number of participants in community employment schemes has not decreased, the reduction in the capital allocation will effectively result in many such schemes being closed; thus, those operating schemes will face huge difficulties in maintaining them. Community employment schemes have brought major benefits to both urban and rural communities; therefore, the budget cuts represent a retrograde step. The money hitherto spent on schemes went straight back into the local economy as facilities and materials were provided. By and large, such items were purchased in the local community. In effect, another source of income for local communities is being removed.

There is a lot in the budget that is anti-rural. Various schemes have been established in recent years to maintain services in rural Ireland. A critical analysis of where we are must include an examination of the negative effects of the drive to centralise everything in urban areas. It has happened here, in the United States and elsewhere, but it has proved very costly for the State. People who live and work in rural Ireland are not a great drain on State services, including transport, because they provide their own services. Social planners and departmental decision-makers have been working constantly on this issue, as have groups such as An Taisce, yet the policy has failed across the world. The budget provisions will affect rural schools, local improvement and group water schemes which have made a great difference. Rural Ireland is being targeted yet again because of the cutbacks in such schemes which provide ten times the value offered by similar schemes in urban areas.

Having made these points, I would be grateful to receive clarification from the Department on the question of S and A class contributions for small companies.

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