Michael D Higgins (Galway West, Labour)
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Question 76: To ask the Minister for Social and Family Affairs his views on whether the rules and rates governing secondary benefits can, at times, result in severe poverty traps; his plans to reassess the household income threshold of €317.43 for retention of secondary benefits such as rent supplement; his views on raising the income threshold to €400, in view of the fact that this is the amount it would be had it been indexed originally; and if he will make a statement on the matter. [30939/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Social welfare programmes aim to be responsive to the needs of those who depend on income maintenance support while providing incentives to assist people to become more independent financially, particularly through employment.

A number of measures have been introduced in recent years to remove disincentives to taking up employment and to assist in the transition from welfare to work. These measures include special means disregards and tapered withdrawal of benefits as earnings increase, and employment support schemes such as the back to work programme.

People, including one parent families, are entitled to retain certain social welfare and other secondary benefits in total or in part for the duration of the employment scheme, subject to certain conditions. For most people the most significant secondary benefit is rent or mortgage interest supplement, which is paid under the supplementary welfare allowance scheme. An income limit of €317.43 per week applies to the retention of these supplements. No income limit applies to the back to work allowance itself.

While this rent supplement retention income limit has not changed since its introduction, significant other improvements have been made to the means test subsequently. Back to work allowance and family income supplement, in cases where one or both of these are in payment, are disregarded in the assessment of the €317.43 weekly income limit. PRSI and reasonable travelling expenses are also disregarded in the means test.

In effect this means that people who commence employment through a back to work scheme, following a period of unemployment, can have a weekly household income significantly in excess of the €317.43 limit and still qualify to retain 75% of their rent or mortgage interest supplement. For example, in the first year of their participation in the back to work allowance scheme, a single person can have combined income from the back to work allowance and wages of €429 while a couple with two children can have a combined income of €528.25. These thresholds increase each year by reference to increases in primary social welfare rates.

Rent supplement may be retained for up to four years on a tapered basis, that is, 75% of supplement in year one, 50% in year two and 25% in years three and four. In addition, the maximum payment limit of €317.43 per month on the amount of supplement payable was abolished for people on the approved schemes. As a consequence, many families retain more of their rent supplement than had been the case prior to these changes taking place.

People availing of an employment support scheme may opt to be assessed under either standard supplementary welfare allowance rules or under the special retention rules and will be entitled to receive payment under whichever is the more favourable option for them. A person on a community employment scheme or other back to work scheme whose household income is above the €317.43 weekly limit for retention of secondary benefits may still qualify for rent supplement under the standard rules. In that context, I introduced amending regulations in January 2005 to increase the income disregard in the standard rules of the scheme from €50 to €60 per week.

Overall, I consider that the current rent supplement eligibility thresholds and disregards, together with improvements in the standard rules of the supplementary welfare allowance scheme, ensure that people have a financial incentive to take up back to work opportunities. Nonetheless, the effectiveness of these arrangements is being considered further in the context of a policy review of the supplementary welfare allowance scheme which my Department is undertaking at present as part of its ongoing expenditure review programme.

Jan O'Sullivan (Limerick East, Labour)
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Question 78: To ask the Minister for Social and Family Affairs the number of exemptions from payment of social insurance employment contributions in respect of each of the past five years for a period not exceeding 52 weeks, granted in respect of the temporary employment of persons not ordinarily resident here; the number of such applications granted in respect of a company (details supplied); his plans to review this procedure; and if he will make a statement on the matter. [30954/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Since 2000, a total of 2,480 PRSI exemption certificates have been granted in respect of the temporary employment of persons not ordinarily resident in this country. Of this total, 1,504 certificates were granted to the company in question. An annual breakdown of these certificates is outlined in the following table.

PRSI exemptions are issued in accordance with Article 97 of SI 312 of 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-EEA and to workers covered by bilateral social security agreements with this country.

When a request for an exemption certificate is being processed, a signed declaration is obtained from each employer confirming that the person for whom the exemption certificate is being sought has been retained in the social insurance regime of their home country while working in Ireland. This is intended to confirm that the employee is being posted and is covered for social insurance in his/her home country while covered by an exemption certificate.

In randomly selected cases, independent confirmation is sought from the authorities in the employee's home country that social insurance payments have actually been made during the period covered by the exemption certificate. This control complements the employer's declaration that the employee has been retained in insurance cover in his-her own country.

In the case of the company in question, a random sample of exempted cases has been referred to the relevant overseas authorities, via the Department of Foreign Affairs, and confirmation has been received that the employees involved remained attached to their home country's social security regime during the period of the exemption. Granting of an exemption certificate is also linked to the existence of a valid work permit which confirms that the employee is not ordinarily resident in this State and is entitled to work here.

The needs of the Irish economy have changed significantly since the PRSI exemption legislation was introduced in 1961. There have been changes 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 consider any necessary measures for change in the light of the review.