Seanad debates

Wednesday, 27 March 2019

Protection of Employment (Measures to Counter False Self-Employment) Bill 2018: Committee Stage

 

10:30 am

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

We know the cost of false or forced self-employment is not only borne by the individual in terms of his or her security, but also by the public. When we have discussed the many things on which the Minister and I would like to spend social protection funds one of the issues that arises is the level of funds and of revenue. The loss of PRSI through false or forced self-employment is immense. The Department's own presentation to the committee really emphasised the huge loss of revenue involved. We know that there is a memorandum of understanding between the Department of Employment Affairs and Social Protection and Revenue. It is avoidance. We have seen cases pulled up in which it is shown that a person should be classified as an employee but has been classified as self-employed. If that same pattern continues, we are in the zone of avoidance. If a company has multiple cases against it and still does not change its overall practices, which comes down to that sectoral issue, it needs to be seen as avoidance and not as misclassification. That is too kind a framing for what it often a very systematic practice.

I understand the Minister has concerns about the inclusion of this section in the Bill, but this is tax avoidance. In that context, I ask the Minister to join in in seeing how it can be tackled. Is there more that can be done in the memoranda of understanding between Departments? Is there more that can be done by way of the finance Bill? Where does the Minister see actions being taken in respect of this issue?

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