Seanad debates

Wednesday, 24 March 2010

Finance Bill 2010 (Certified Money Bill): Second Stage.

 

10:30 am

Photo of Liam TwomeyLiam Twomey (Fine Gael)

Public sector workers have taken a disproportionate hit with wage cuts and pension levies when compared to other taxpayers. The State part of the economy is in the direst of straits and controlling the public finances is the reason behind the Minister's introduction of the pension levy and wage cuts for public sector workers. The current industrial action being taken by public sector workers is damaging productivity in the State part of the economy. That will have a knock-on effect on the competitiveness of the overall economy, slowing down or even disrupting its recovery this year. What are the public sector unions seeking in their discussions with the Government? Knowing that would give us an opportunity to debate it further today.

According to dentists, the abolition of the optical and dental benefit has had a significant effect. Even the Health Service Executive, HSE, is recommending patients have teeth extracted rather than having fillings or other preventive work carried out because it is more expensive. That is not the direction public dental hygiene should take. Will the Minister indicate how long he intends to suspend this scheme? If it goes on for too long, it will set back the improvements in dental hygiene made over the past several years. Is the suspension due to problems with the social insurance fund? Is the fund more or less depleted and there is a need to replenish it?

A recent controversy emerged concerning pension provisions for the self-employed. I have been informed about how this affects general practitioners, GPs, so I am wondering how it may affect other groups. GPs who work under the General Medical Services, GMS, scheme are entitled to a pension provision from the scheme as they and the HSE contribute a percentage to a superannuation fund. Many of these GPs may also have set up a private pension scheme before they joined the GMS scheme. I have been informed by an accountant that these GPs must use up all their contribution options to the GMS superannuation scheme before they can contribute to a private scheme. Is this the case? If so, what is the status of these funds? Should the GPs pull out of their private pension funds and transfer them to the GMS superannuation fund?

Among GPs there is an understanding that locums who cover holidays or a long-term illness at a practice are self-employed except in exceptional circumstances in which they would be considered PAYE workers. When I contacted my local tax office, however, it was under the impression that locums were categorised as PAYE in the majority and self-employed in exceptional circumstances. There is a need for the Revenue Commissioners to write to every pharmacist, dentist and GP using locum services to inform them on this issue. GPs will receive tax back on this issue, and this is happening already in the case of Shannonside Co-op where each individual could be exposed to a tax bill of up to €100,000. I do not know if this could happen in other sectors of the economy. No one has approached me on this point but if there is a misinterpretation of tax code by professionals or other businesses, the matter should be cleared up.

I should go back to ranting against the Government.

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