Joan Burton (Dublin West, Labour)
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Question 62: To ask the Minister for Social and Family Affairs the number of exemptions from payment of social insurance employment contributions, for a period not exceeding 52 weeks, granted in respect of the temporary employment of persons not ordinarily resident here in respect of each of the past five years; 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. [37216/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Since 2000, a total of 2,486 PRSI exemption certificates have been granted in respect of the temporary employment of persons not ordinarily resident in this country. Of that total, 1,504 certificates were granted to the company in question. An annual breakdown of those certificates follows at Appendix 1.

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-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 his or her home country while working in Ireland. That is intended to confirm that the employee is being posted and is covered for social insurance in his or 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. That control complements the employer's declaration that the employee has been retained in insurance cover in his or 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 that 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.