Ray Butler (Meath West, Fine Gael) | Oireachtas source

I welcome the Bill and the improvements it provides to certain sectors in respect of social protection. In the course of the debate, many Members have spoken on the subject of entitlements for the self-employed. I have been waiting for the forthcoming report from the departmental working group on the future status of self-employed people and social protection. If this country is to move forward and to create new jobs, the issue of self-employed people and social protection must be considered. In fairness to the Minister, she has been championing the cause. Most self-employed people pay an S-class stamp, which amounts to 4% of their annual earnings and essentially, this entitles them to a contributory pension and nothing else. However, there have been some leaks from the forthcoming report to the effect that were a further 1.5% to be paid, bringing the contribution to 5.5%, it would enable the provision to those concerned of some other entitlements such as illness and disability benefits. This is to be welcomed, as small and medium-sized enterprises, SMEs, are finding it hard at present and their takings are down. Given the recession, this is natural but one must recall that in such cases, if they are making a profit, they will pay income tax on it. If not, they are taking drawings and if such drawings also are taxed, as a self-employed person I would rather look after myself and put something on a stamp than have nothing available, were something to go wrong. Consequently, I welcome the picture that is emerging.

I also thank the Minister for lowering the bar for self-employed people and getting some entitlements for them. Since she assumed office, she has been excellent in looking after the self-employed and I urge her to keep it up. Some infrastructure must be put in place for social protection for this group in the future and I look forward to working with the Minister on this matter as a member of the Joint Committee on Education and Social Protection. The issue of self-employed people and social protection must be recognised because while they will get us out of the mess in which we find ourselves, a safety net is required for them in the future.

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