Mary Hanafin (Dún Laoghaire, Fianna Fail)

This is the same as in the tax system. If one owes money to Revenue, it can take it from one no matter how long one owes it. However, if it owes one money, one only has four years within which to get it back. It will be the same with PRSI and it brings it into line with the tax system.

As regards how much money is involved, in 2008, refunds were paid to 14,500 people costing €21.3 million. That was a huge increase on previous years. That includes those people who had made a contribution and were getting a rebate within the four year period about which we are talking but also those who go back much further. One can go back to 1953 but, in effect, people generally only go back to 1988 when insurance for the self-employed was introduced.

There is a disadvantage for the customer in so far as he or she will only have four years to reclaim the money. From a Department point of view, there are savings to be made on the money that will be repaid. There are huge administrative savings because every year an individual assessment must be done when different rates of PRSI applied. If that can be done more speedily not only will we save on administration, it also means the payments can be made more quickly.