Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 416: To ask the Minister for Social and Family Affairs his views on whether the situation where farm families are in receipt of farm assist but are not allowed to make PRSI contributions in view of the fact that if a farm family was earning over €3,500 from the farm but not claiming social welfare it can make the payment and it has major implications for either the farmer himself, pension wise, or in the case of death for the widow or widower; and if he will make a statement on the matter. [33007/05]

Séamus Brennan (Dublin South, Fianna Fail)
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The farm assist scheme was introduced in the Social Welfare Act 1999. The new scheme was designed specially for farmers on low incomes and replaced the existing smallholders assistance scheme. The scheme includes a preferential means test, taking into account both the farm income and off-farm self-employment of farmers and spouse.

Like unemployment assistance and the previous arrangements for those in receipt of smallholders unemployment assistance, these self-employed contributors are excepted from liability for class S PRSI under the Social Welfare (Consolidation) Act 1993. However, they are eligible to pay voluntary contributions, currently payable at €253 per annum and is equivalent to the minimum contribution for class S contributors, to maintain their contribution record in respect of the period they are claiming farm assist. This provision is referenced in the information leaflet on the farm assist scheme.

Farmers with income in excess of €3,174 per annum who are not in receipt of a farm assist payment are insurable at PRSI class S are entitled to the following payments: widow's-widower's contributory pension; orphan's contributory allowance; old age contributory pension; maternity benefit; adoptive benefit; and bereavement grant.

While credits may be awarded in particular circumstances, in general terms credited contributions are not awarded in respect of the farm assist payment. The rules which apply to credited contributions in general stipulate that the award of unemployment credits is limited to employed contributors. Credited contributions may not be awarded, however, where the last paid contribution made by the person in question was in respect of self-employment, class S, for example a self-employment farmer with earnings in excess of €3,174 per annum.

Any consideration of the question of providing for the award of class S credited contributions could not be confined to those persons in a particular sector or qualifying for a particular welfare payment, such as farm assist, but would also have to have regard to other groups formerly insured at class S. This could have considerable cost implications in terms of creating entitlements to benefits in the future.