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

I would have liked to have spoken a couple of weeks ago during the debate on the Social Welfare and Pensions Bill, but my mother passed away that week and I was not able to do so. I am very grateful to have the opportunity today to speak about the provision of social protection measures for the self-employed, a matter I have continued to raise at meetings of the Oireachtas Joint Committee on Education and Social Protection. When I was canvassing during the recent local elections, this was raised as a serious issue for those whom I met who were self-employed and feared they would have no protection in the event that their business collapsed or they suddenly became ill. Other Deputies have also raised this matter and thank them for keeping it on the agenda for discussion.

The self-employed pay stamp at 4% and it is proposed to increase this rate to 4.25% and maintain it for an approximate two or three year period. Depending on the level of economic growth, the rate would continue to increase incrementally by 0.25% every second year or so to eventually reach a maximum rate of 5.5%. Progress has been made in recent months in resolving this matter for the self-employed. ISME, the Self Employed Alliance and some unions have spoken at length at Oireachtas meetings in giving their points of view on introducing a new stamp rate for the self-employed to offer security at vulnerable times. The introduction of a new stamp rate would provide the self-employed with social welfare payments on the closing of a business, in times of illness and disability, while all other welfare payments would be means-tested. After much discussion at several meetings, I am encouraged and heartened by the positive responses from the Self Employed Alliance which represents smaller sized employers and is wholeheartedly in favour of the introduction of the new stamp rate.

While the other representatives of the self-employed are also in favour, the elephant in the room is making it a mandatory payment, as opposed to a voluntary contribution. However, I argue that voluntary participation cannot correlate with social protection measures. Making it a voluntary payment would only serve to negate the possibility of having sufficient social welfare funding available to cover the needs of the self-employed. Therefore, a mandatory payment is required in order for this to work.

As the seeds of small business start to show signs of taking root again nationally, this appears to be the most opportune time to formally introduce this stamp rate and in doing so provide social welfare cover for those who would ordinarily have no security if the situation remained the same. Furthermore, I have spoken at length to the Ministers for Social Protection, Finance and Jobs, Enterprise and Innovation about the introduction of a new stamp rate and they have all reacted positively to this becoming a real option for the self-employed. I also welcome news that ISME is preparing to undertake a survey of all its members on the subject. I am hopeful the self-employed will recognise the absolute benefits of such a move.

There are approximately 340,000 self-employed persons in the country, all of whom may need access to social welfare protection at times of vulnerability. Therefore, we cannot allow the current system to remain in place. The glaring gap must be bridged to provide them with security when they need it most and I hope all sides involved will accept this finding.

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