Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

I am definitely keen to do something. The issue has been going on for a long time and I have the opportunity now to do something about it. I intend to make some change in the forthcoming budget or, more particularly, in the forthcoming social welfare Bill, which will come before this House in the winter.

The situation as it stands is unfair. Local authority members pay 4% PRSI and get no benefits in return for it, which is a uniquely unfair position, and that applies to other public officeholders also. However, it is different for us in the sense that we have severance and pension arrangements but councillors do not. Therefore, they are in a uniquely unfair position and one which needs to be dealt with. I think all councillors know that but what they may not know or realise is that local authorities - which are not technically but which are effectively their employers - do not pay employer's PRSI. If one were to change the situation and make them, for example, class A contributors like everyone else who works for the councils, the councils would then have to pay employer's PRSI and that would have an impact on the councils' budgets. That needs to be borne in mind. Another potential option is to treat them in the same way as those who are self-employed and move them to class S contributions. A further option would be to raise the minimum threshold below which one does not have to pay anything. In that way they would not have to pay anything, but they still would not get any benefits.

There are a number of options and I will be meeting representatives of the Association of Irish Local Government in the coming weeks to discuss those options and to decide on the best option. As is always the case with these things, there are knock-on consequences. I want fairness for councillors but I am not in favour of special treatment. Whatever the case, we do should bring them in line with other workers or other self-employed people. However, it must be something that is fair and not something that creates special treatment or a special class or privilege and, in fairness, I do not think they are looking for that.