Alice-Mary Higgins (Independent) | Oireachtas source

-----is specifically related to the making of voluntary contributions. In this House last week, the Minister spoke about his concern to ensure that contributions are being made, that he wants to encourage the making of contributions, and that he wants to increase the fund that is available. I do not believe that our pay related insurance fund will ever be adequate in terms of our pension and other needs, especially given that we have one of the lowest rates of employer PRSI in Europe. We will always look to other parts of taxation to intervene constructively in our pension and pay related social insurance systems to supplement that. However, taking in good faith the Minister's comments on the importance of contributions, an anomaly has arisen whereby it has become harder for people to make contributions and to increase their contributory record.We have the situation whereby, in the past few years, even as the number of contributions required has risen and pushed many women to a lower income, the barriers to making voluntary contributions have also gone up. Previously, up to a few years ago, one would have had to make 260 contribution weeks before being allowed to make a voluntary contribution. That has now increased to 520 contribution weeks before one is allowed to make a voluntary contribution. In effect, that means people need to have paid in ten years of previous contributions before they are allowed to make a voluntary contribution.

There is also the particularly needless obstacle, namely, one has to apply to make those voluntary contributions within 12 months of the last completed tax year during which one paid compulsory insurance. In many cases, particularly those forced out of work at 60 or 65, people only realise the shortfall they have in their contributions at a later stage. This provision makes it difficult for them.

There are also several issues which affect the self-employed. Many of them may go for a gap of longer than a year between making contributions because they may be hoping to restart a new business or start new employment. They then find themselves coming back into the PAYE sector. Many people who ran a business for 40 or 50 years may have found themselves as a PAYE worker in their last five or ten years of employment. They are very much blocked by this obstacle from making supplementary contributions.

There is a significant gender dimension for women who are returning to the workplace. There is also a dimension for those who are moving from being self-employed to becoming PAYE workers and then facing a gap which they cannot bridge. There is also very much an issue for returned emigrants who try to make up the gap. Will the Minister consider, either in this Bill or elsewhere, making it easier for people who want to contribute to our system? Will he facilitate rather than block those who want to pay PRSI stamps? I would appreciate the Minister's thoughts on this. I understand we will not be able to press the amendment today. However, I would like to know what the thinking is in his Department about this anomaly.