David Cullinane (Sinn Fein) | Oireachtas source

I am opposing this section. The first point to make is that we do not have a statutory sick pay scheme in this State, unlike in most other countries. What we are dealing with here is a crude, cost-cutting measure. It is true that most workers will not be affected by it - public sector workers will be covered, as will a majority of private sector workers because their employers will pick up the cost. However, a minority of workers - moreover, a growing minority - will not be covered. As we know, part-time work, precarious employment, zero-hour contracts, flexible contracts and so on are becoming an increasing feature of employment in this State. It is these types of workers who will be most affected by the cut in illness benefit entitlement of €112.80 which arises from the extension of the waiting period. The bottom line is that a significant section of people who have paid their PRSI and the universal social charge will now have less cover.

As Senator Mooney pointed out, the measure will also have an impact on employers, many of whom are struggling to meet the costs of business. Any additional cost or burden that is imposed on small business employers is a difficulty. Workers pay PRSI in the expectation that if they get sick they will be able to access illness benefit. Both employers and employees are paying more PRSI than ever before, in addition to which workers are paying a universal social charge, the purpose of which has never been properly explained. All people can see, in budget after budget, is fewer social insurance entitlements on the one hand and, on the other, more money being taken out of their wages.

This measure will impose a burden on many families and individuals. While the figure of €112.80 might seem small to the Minister, it will not be so for low-income individuals, in particular, who find themselves in a position where they are not covered and must take the hit themselves. Likewise, it is a significant burden for employers who decide to take the hit. I am opposing the section for all of these reasons.