Seanad debates

Tuesday, 19 July 2016

Tax and Social Welfare Codes: Motion

 

10:30 am

Photo of Colm BurkeColm Burke (Fine Gael) | Oireachtas source

Earlier, speaking on behalf of Sinn Féin, Senator Conway-Walsh said nothing has actually changed. It is important to realise the Social Insurance Fund income and expenditure for 2011 to 2016 showed a deficit of €1.4 billion in 2011, €2.084 billion in 2012 and €1.314 billion in 2013. This year, for the first time in six years, the income will be in excess of expenditure. This is proof of the numbers in employment as more people are contributing to the Social Insurance Fund. The expenditure from the fund is more than €8 billion. If we wish to include the self-employed in the social insurance scheme, we must ensure we have adequate funding to support them. In fairness, the self-employed are prepared to make a contribution. I agree with Senator Humphreys and other speakers that it must be compulsory. If people have the choice to opt out, the scheme will not work.

I, too, can recount a very sad case of a person who had worked for 40 years and never once received a State benefit, who had a business that could not generate any income and who could only get a payment of €2.50 per week from the Department of Social Protection. He was totally frustrated that he did not qualify for any benefit. That is wrong and it is time we made changes.

I wish to raise another issue, namely, maternity benefit for the self-employed. There is an anomaly in the scheme. If a baby is born before 29 March, the income of the previous year is taken into account in qualifying for maternity benefit. However, if he or she is born after the 29 March, the income for the year in which the baby is born is the relevant period. If the self-employed mother has not earned an income of €10,000 by the date the baby is born, she will not be paid the maternity benefit until the end of the year. She will not be paid the benefit while she is on maternity leave. That matter needs to be dealt with. The self-employed get frustrated with the social welfare system at times. I have dealt with this matter on two occasions previously in this House and there has been no movement on it. I ask the Minister to deal with it, now that we are tackling the entitlements of people who are self-employed. I again ask the Minister to look at this issue.

I commend the motion to the House.

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