Joan Burton (Dublin West, Labour) | Oireachtas source

It is not intended to so apply. As I previously advised the House, the advisory group on tax and social welfare is completing work on the provision of PRSI entitlements and contributions for self-employed persons. There has been quite a demand from self-employed persons to be able to apply for social insurance coverage. For a contribution of 4% for the required number of years they receive an entitlement to a retirement pension, a widow's or widower's survivor's pension which, as the actuarial review pointed out, is tremendous value for money. If there was to be an extension to other benefits, one would have to contribute. In the case of somebody in employment, the individual employee contributes 4% and the employer contributes, over 10%; therefore, there would have to be a bridging of the gap. Last year's actuarial report went into very extensive detail of what would be required to bridge it.

I have said publicly that I am very sympathetic to this argument. It is referenced specifically in the programme for Government. I am particularly conscious of the fact that young people in the employment market nowadays are likely not to have one job for life. They are much more likely to be employees at some stages and at others, contractors on short-term contracts, self-employed or developing their own companies. We are encouraging all of this; therefore, this is one of the reforms to which we have to move in the social welfare system. It has significant financial consequences and we must develop proposals in that context. The advisory group which comprises people with great expertise in the area is examining it and I expect to receive a report by the end of the year, perhaps by early autumn.