Paddy Burke (Fine Gael) | Oireachtas source

I welcome the Minister to the House. I thank him for extending the new provisions to the self-employed. Many of those who are self-employed have suffered severe hardship over the past number of years, in particular those who downsized or went out of business.

I have to agree with Senator Gavan on the redundancy clawback of two weeks per year. Many of those who are self-employed, in particular sole traders, have endured very severe hardship, especially those who may have paid for their houses but have lost their businesses. They had no option but to pay two weeks per annum for all of the employees they had engaged when they closed their businesses over whatever number of years were involved. However, if one owned a company, it could be liquidated. The Government got rid of the 70% clawback that was in place for the two weeks per year rule. A large company that went out of business in Waterford, TalkTalk, resulted in 500 people losing their jobs and the redundancy payments had to be paid by the State. They would have to be paid by the State anyway, because the company went out of business. However, sole traders who downsized or lost their businesses had no option but to pay the two weeks per year required. In some cases, where employees were with an employer for many years, this resulted in considerable hardship. I know of a number of cases where people had to remortgage their houses in order to pay redundancy payments for their employees even though they were going out of business themselves and were not entitled to any payment from the Exchequer in terms of social welfare.

I would also like to thank the Minister for the class K PRSI contributions for councillors. One of the first Topical Issue matters the Minister took in the House was put forward by me shortly after the Government was formed. At the time, the Minister said he would examine class K PRSI contributions in regard to councillors and would consider allowing it to be changed to allow them to avail of a contributory pension. I thank the Minister for taking the initiative in this regard and for his swift action. It was only six or eight months ago that the issue was first brought to his attention.