Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

As regards amendment No. 1, it is out of my hands. I do not rule them in or out of order. Regarding amendment No. 2, I made the point previously about including commitments in primary legislation to producing reports, particularly legislation that is already as complex as the Social Welfare Consolidation Act.

The actuarial review of the Social Insurance Fund, published in March 2023, is a very detailed and comprehensive report with a wide range of scenarios examined and fully costed. One of its findings was that the fund will experience significant long-term sustainability challenges. This is mainly driven by the challenges Ireland will face in relation to demographics, and especially the ageing of our population. The need to take action now has also been highlighted by the Economic and Social Research Institute and the Irish Fiscal Advisory Council. The actuarial review sets out a range of options to address the sustainability challenges it identified.

After detailed consideration the Government's view is that it is better to act early with modest increases to avoid later excessive cost burdens on employees, employers and the self-employed through a failure to act in a timely manner. A 0.1 percentage point increase means 90 cent per week for a worker on average earnings. These increases will support the retention of the State pension at 66 years of age and will help address the long-term sustainability challenges facing the Social Insurance Fund. It will also provide for the jobseeker's pay-related benefit.

In March, a report was published by the Department of Enterprise, Trade and Employment on the cost impact on businesses arising from improvements in employment conditions, including the increase in the national minimum wage, the introduction of auto-enrolment, and statutory sick pay. Last month, in response, the Government agreed to a range of measures to reduce costs for small and medium-sized businesses. I am satisfied that the approach decided by the Government in relation to PRSI over the next number of years achieves a fair balance between addressing the long-term sustainability of the Social Insurance Fund without unduly impinging on the incomes of workers and the cost of doing business in Ireland. If we do not increase employees' PRSI and rely solely on increases in PRSI for employers and the self-employed, this would clearly lead to very significant pressures on employers regarding the affordability of retaining staff, expanding their workforce and generally keeping their businesses sustainable.

A further review of the adequacy of the social insurance rates will be carried out once the next actuarial review is completed in 2027. Given the extensive analysis already in the public domain, including the actuarial review and the Government commitments to a moderate and reasonable path, I am not accepting this amendment to prepare a report. I have answered several parliamentary questions in the past weeks costing different PRSI scenarios. Those scenarios cover a number of years. That is the best way to get the information. I do not believe it is necessary to put it into legislation.

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