Seán Fleming (Laois-Offaly, Fianna Fail)

This issue was debated on Second Stage and we did not have time to submit an amendment. I am somewhat confused as to the Government policy with regard to this issue. The Minister for Finance announced with great fanfare on budget day the special assignee relief programme scheme in the budget is designed to reduce the cost to employers of assigning skilled workers from abroad to companies in Ireland. These employees would be exempt from income tax on 30% of their salaries between €75,000 and €500,000. This was designed as an incentive to companies to locate key people in Ireland which may in turn attract more companies to locate in Ireland. This was announced as a pro-employment initiative and to promote foreign direct investment. When it comes to the Social Welfare and Pensions Bill, the Minister for Social Protection is, essentially, flying in the face of her ministerial colleague who made an announcement on budget day that this would be exempt from tax. I suspect the Minister for Social Protection is not happy with this type of approach to tax reliefs. She is now saying to the Minister for Finance that he may forgo his PAYE but that she wants PRSI from those people. The Minister of State might indicate what the top rate of PRSI will be on the levels of income we are talking about in terms of the employer's contribution and the employee's contribution. It is sending out a mixed message because people would have got it into their heads since 6 December that this scheme was a tax-free incentive. Little did people know there would be a PRSI sting in the tail once the legislation is passed. That was not flagged. I do not believe it was the Minister's intention. My concern is that it sends a mixed message.

There is one aspect of this particular scheme that it would be remiss of me not to mention. Also under the scheme the Minister announced on budget day that the Irish taxpayer will pay up to €5,000 for private education fees in second level schools for those people who come to this country under the special assignee relief scheme. The Minister announced on budget day with a nod and a wink that he would provide income under the counter without deducting any tax and that with a further wink, wink, if those who qualify for the scheme have children in second level that they would be given €5,000. There is specific reference to that in the Finance Act and the budget day announcement. I suspect the Minister for Social Protection is not happy with such measures. If she is to be consistent she should seek a PRSI contribution in respect of the €5,000 that is being paid by the taxpayer to those people as a benefit-in-kind or some form of additional remuneration by the taxpayer to them. Given that the Minister is taking PRSI off the amount that we understood to be tax free, why is she not following her own logic and pursuing that extra €5,000 for PRSI that is being given as a bonus to those people if they have children in second level education to pay for their school fees? I accept it is a small amount but the same principle applies.

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