Seanad debates

Thursday, 17 December 2009

Financial Emergency Measures in the Public Interest (No. 2) Bill 2009: Second Stage

 

12:00 pm

Photo of Joe O'TooleJoe O'Toole (Independent)

I am sorry. The Minister of State stands to gain but I do not wish to put him in an awkward position. I wish to make one final point. This is an important issue that has not been put forward. I read what the Minister of State said about semi-State companies. They are a group like the semi-State companies and self-funding organisations. The Long Title of the Bill states clearly that its purpose is to reduce State expenditure and to achieve significant savings in expenditure. I must explain one point, which the Cathaoirleach will appreciate, and for which I beg his indulgence.

If the State is not paying somebody in a semi-State company or in a self-funded quango or Government body it receives certain PRSI and other cuts from his or her salary. If their salaries are reduced the amount coming back to the State is reduced in the form of lower levels of PRSI because the State is not paying their salaries. For example, if I was earning €50,000 and was paid by the State, I would pay the full rate of PRSI on the €50,000 but if my earnings were reduced to €45,000, the State would only receive PRSI on €45,000. That goes against the Long Title of the Bill and I want that clarified.

I wished to say a whole lot more-----

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