Seanad debates

Tuesday, 19 July 2016

Tax and Social Welfare Codes: Motion

 

10:30 am

Photo of Maria ByrneMaria Byrne (Fine Gael) | Oireachtas source

I welcome the Minister. I compliment Senator Butler on bringing this very worthwhile motion before the House. Senator Reilly referred to the self-employed as being risk takers, which is a very valid term. When we think about it, they are the ones who take risks, who invest their own finances and who start their own companies, which might just have one employee or 30, 50 or even more employees. There is certainly a risk involved. Coming from a self-employed background, I am well aware of the associated issues.

I welcome the fact that the Minister is willing to take account of all of these points of view and to look at equalisation by 2018 between the PAYE worker and the self-employed. It has been pointed out that there are many different categories of self-employed, from the farmer and the electrician to the entrepreneur. It is welcome that there will be supports in place for SMEs and the self-employed.

During the recession, many of the self-employed fell on hard times. Many had not even separated their personal finances from the finances they had invested in their companies, which was a big issue. Under the previous Government, the cap was reduced for jobseeker's allowance but people still had to prove they were not working a full week, which is from four to seven days. For the self-employed to prove that is very difficult, given that some people might work only one day in a particular week and then work three days the following week. The latter means it is difficult to keep control and to prove the actual position. It is important that the protective net provided to PAYE workers is being extended to the self-employed.

A key element of all of this is ensuring that self-employed people are entitled to the same as PAYE workers. This matter has been ongoing on since 1986. It is now 2016, so it is good that we are heading towards an end. I see this in a very positive light. The 2011 census showed that there were some 306,000 self-employed people. I am sure the number has increased since then, although I do not know what the most recent census figures indicate in this regard. In 2009 some 16.4% of self-employed people were at risk of poverty, which is quite high and reflects the fact many could not access payments.

Other small things would mean a lot to those who are self-employed. For example, PAYE workers are entitled to two optical tests every two years and also to dental appointments. Small changes in these areas could make a big difference to the self-employed, especially those who run smaller businesses. The main point is the cohesiveness of the welfare system. It is positive that we are at last giving a leg-up to the self-employed. By giving them that support, it will encourage them and will be a positive in terms of their expanding their businesses, which, in turn, will lead to greater job creation.

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