Joan Burton (Dublin West, Labour)
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Question 761: To ask the Minister for Social and Family Affairs the inquiries which he has carried out into the issue of 1,416 exemptions from PRSI for employees of Gama; if he has reviewed the granting of these exemptions; if a report has been made; if he will publish the report; and if he will make a statement on the matter. [25980/05]

Séamus Brennan (Dublin South, Fianna Fail)
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PRSI exemptions are issued in accordance with Article 97 of SI 312/1996. The legislation provides for an exemption from PRSI contributions for up to 52 weeks to be granted to employees not ordinarily resident in the State but who are temporarily employed here. The purpose of the legislation is to avoid a situation whereby workers who are sent by their employer to work here temporarily would be subject to social insurance in two countries at the same time. Similar arrangements apply under EU legislation to workers moving within the EU and EEA and to workers covered by bilateral social security agreements with this country.

The granting of the exemption from PRSI for an individual worker is subject to a number of conditions, including a requirement that the worker holds a valid work permit and that the employer submits a signed declaration confirming that the worker has been retained in the social security system of the home country while working in Ireland. In the case of the company in question, evidence that the workers were legally entitled to work in this country was received and the company submitted the required declarations of attachment to the social security system in Turkey.

To confirm the situation, a selected number of some 80 cases was referred to the relevant authorities in Turkey via the Department of Foreign Affairs for confirmation that the workers involved had been retained in their home country's social security regime during the period covered by the PRSI exemption certificates. It has been confirmed by the social security authorities in Turkey that the employees remained in the social insurance system while exempted from PRSI in this country.

Further inquiries were made by my Department with regard to the PRSI contributions due in respect of the significant number of workers of the company in question who continued to work here after the period of PRSI exemption expired. These inquiries have confirmed that PRSI contributions were made in respect of the workers concerned and, while further work is underway to confirm the situation, the indications are that the company has now discharged its full liability in this regard.

The needs of the Irish economy have changed significantly since the PRSI exemption legislation was introduced in 1961. Changes have occurred in working patterns and skill levels and the enlargement of the European Union has also affected the labour market. Against this background and having regard to the circumstances of the case in question my Department is undertaking a review of the policy and legislative provisions and the administrative arrangements for the PRSI exemption scheme. It is my intention to bring forward any necessary measures for change in the light of the review. I am advised that this work will be completed shortly and the question of publication will be considered when the review is to hand.

Joan Burton (Dublin West, Labour)
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Question 762: To ask the Minister for Social and Family Affairs the number of workers here who are now availing of arrangements similar to those enjoyed by Gama workers of exemption from PRSI and the use of the remittance basis for tax purposes; the employment these persons are in; the cost to the State of the loss of PRSI and income tax for each year from 2000 to date; the categories filled by such workers; the number who are employed in the IFSC or related employment; if he will review the remittance basis; and if he will make a statement on the matter. [25982/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Issues relating to tax are a matter for my colleague the Minister for Finance. The regulatory basis for the PRSI exemption scheme is contained in Article 97 of SI 312/1996. The legislation provides for an exemption from PRSI contributions for up to 52 weeks to be granted to employees not ordinarily resident in the State but who are temporarily employed here. The purpose of the legislation is to avoid a situation whereby workers who are sent by their employer to work here temporarily would be subject to social insurance in two countries at the same time. From 1 January 2005 to 31 August 2005, PRSI exemptions were issued in respect of 349 workers under the scheme of whom 281 were employed by the company named.

Information supplied with the applications in 2005, indicates that the workers for whom exemptions were sought are in a range of employment as follows; management consultants, accountants, investment managers, IT specialists, senior engineers, design engineers, project managers, company directors, purchasing managers and construction workers. The amount of PRSI which would arise if the exemptions had not been applicable to these workers is not available as details of salary payments are not a requirement in the application process. Workers moving within the EU and EEA and workers covered by bilateral social security agreements, who are posted temporarily to this country are similarly retained in the social security system of their home country. Details of the numbers of such workers are not readily available.