Dáil debates

Wednesday, 20 March 2013

Topical Issue Debate

Social Welfare Code

4:35 pm

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle's office for selecting this matter. In the short time I have been in this House, one of the difficulties I have come across - I am sure other Deputies have faced the same situation - concerns the problems of self-employed people who attend constituency clinics. Their businesses have evaporated and collapsed in a heap thanks in no small way to the mismanagement of the economy for a number of years by the previous administration, leading to the collapse of the construction industry. The vast majority of people who are being left in a limbo situation are those who were self-employed and either directly involved in the construction industry or those connected to the retail sector who have seen their businesses collapse in the economic meltdown that this Government is now trying to get the country out of.

On a number of occasions I have raised this matter by way of parliamentary questions to the Minister for Social Protection. In its pre-budget submission, the Small Firms Association has also identified this as a major issue. When people who have made substantial contributions by way of taxes and PRSI - both for themselves and, more importantly, for their employees - present themselves at a social welfare office when times get tough, there is absolutely nothing available for them.

I know the Minister of State's answer will be that a review has been established and that there is a class S scheme for the self-employed and class A1 for employees.

However, at present there is no way to allow people to make an additional contribution on a voluntary basis, on top of what they already are making, or to encourage them to so do in order that when times get tough, they would have something they could avail of, if that is what they desire. Moreover, there are many other anomalies in the system. For instance, I refer to the difficulty people who were self-employed encounter if they manage to get into a community employment scheme in respect of being reassessed or the difficulties they have in gaining access to retraining or any form of support from the State in the context of such support being assessed under spouse's income or being assessed on a holistic basis. This issue pertains to a group of people who are silent regarding the effect this is having on them. However, I firmly believe that were one able to drill down into the figures on the approximately 80,000 people who emigrate from this country annually thanks to the economic collapse, they primarily would be tradespeople such as carpenters, painters, plumbers or plasterers. The vast majority of this group were self-employed and have credit they cannot service. Moreover, the vast majority of them had people working for them, kept their taxes, paid their PRSI and were instrumental in making the economy work.

If this country is ever to return to having real growth in local communities, those who are the wealth generators must be looked after. The Society of St. Vincent de Paul has identified the self-employed as being the new poor. This issue has been kicked around for several months in respect of a commission to establish and examine what will be done for them. There is a real sense of urgency in this regard because there will be a major problem unless something is done soon. I wish to make an appeal to the Minister, through the Minister of State, because unless the issue of how to treat self-employed people is dealt with, we will be storing up a major social problem for ourselves. Those concerned are not people who make up stories but are genuine people who cannot make ends meet at present. I appeal to the Minister of State, through his colleague in Cabinet, the Minister for Social Protection, to put this issue at the top of the agenda.

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