Thomas Pringle (Donegal South West, Independent) | Oireachtas source

I will concentrate on the PRSI and social welfare treatment of self employed people. As the motion stated, there are approximately 350,000 self-employed people in the country. Many of these are working in jobs that would traditionally have been employee jobs but, because of moves by the employers, are on contracts for services and have become de facto self employed although they have no control over their incomes and potential for earnings. One of the most difficult aspects of the recession to deal with at the height of the financial collapse was trying to explain to formerly self-employed people that they were not entitled to any social welfare or social protection when their businesses had failed and they were looking for a safety net. It took a long time for the Department of Social Protection to come to terms with it and ease the burden on them and their ability to access jobseeker's allowance, which is a means-tested payment. Finally, it acted and made it slightly easier for the self employed to access the payment. Self-employed people should have a right to social protection and should pay the additional contributions to ensure they have the right to access social protection under the PRSI system. In 2012, I drafted legislation to give this right to self-employed people but, unfortunately, due to the archaic rules of the House, it was ruled out of order on the grounds that an Opposition Deputy cannot introduce legislation that might increase taxation.

Tonight's motion calls for voluntary contribution system to be introduced for self employed people. However, a voluntary system will not work. We already have a voluntary system of PRSI contributions for self-employed fishermen whereby they can pay an additional 4% contribution voluntarily and avail of limited social protection benefits. Over the years it has been in operation, an average of seven to nine self employed fishermen have availed of it, and this is because it is voluntary. Nobody volunteers to pay tax, even though they may benefit from it in the future, and PRSI is seen as a tax. However, social protection should be extended to self-employed people under a compulsory system, and this is vitally important. We should recognise that self-employed people are less likely to become unemployed due to the nature of self employment. Given that they also employ people, we should have a favourable PRSI system that provides benefits for them.

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