Pat Carey (Dublin North West, Fianna Fail)
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Question 498: To ask the Minister for Finance if his attention has been drawn to the concerns of a group (details supplied) regarding the implication of the decision to introduce a new €10,000 tax allowance for childminders who avail of the scheme but will not be entitled to make voluntary social insurance contributions in their own right; and if he will make a statement on the matter. [1666/06]

Jimmy Deenihan (Kerry North, Fine Gael)
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Question 533: To ask the Minister for Finance if childminders relief will be linked to social insurance in order that all childminders will be covered under class S and that their total income will be included for social insurance purposes; and if he will make a statement on the matter. [1579/06]

Pat Carey (Dublin North West, Fianna Fail)
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Question 535: To ask the Minister for Finance if his attention has been drawn to the concerns of a group (details supplied) regarding the implication of the decision to introduce a new €10,000 tax allowance for childminders who avail of the scheme but will not be entitled to make voluntary social insurance contributions in their own right; and if he will make a statement on the matter. [1665/06]

Jerry Cowley (Mayo, Independent)
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Question 537: To ask the Minister for Finance his plans to introduce a right for childminders to link a new scheme to PRSI and to enable these childminders to avail of the scheme which will entitle them to make voluntary social insurance contributions and following budget 2006 can avail of a tax allowance of €10,000; his views on whether this step is necessary; and if he will make a statement on the matter. [1732/06]

Joe Higgins (Dublin West, Socialist Party)
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Question 538: To ask the Minister for Finance if in the upcoming Finance Bill he will make provisions for childminding relief to be linked to social insurance in order that all childminders will be covered under class S and that all their income will be included for social insurance purposes. [1740/06]

Billy Timmins (Wicklow, Fine Gael)
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Question 547: To ask the Minister for Finance the position with regard to the announcement in budget 2006 to introduce a new €10,000 tax allowance for childminders; if he will incorporate changes in the forthcoming Finance Bill to ensure that this scheme is linked to PRSI; and if he will make a statement on the matter. [1885/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 498, 533 535, 537, 538 and 547 together.

The childminding relief I introduced in budget 2006 allows an individual to mind up to three children in the minder's own home without paying tax, PRSI or levies on the childminding earnings received, provided the amount is not more than €10,000 per annum. If childminding income exceeds €10,000, the total amount will be taxable, as normal, under self-assessment.

The new scheme is not a tax allowance, but is in fact an income disregard of €10,000. It automatically follows that the amount earned, once it does not exceed €10,000, is not assessable to tax or PRSI or levies and is thus exempt from tax, PRSI and levies. Any change to make the income subject to PRSI, either on a voluntary or mandatory basis, would require an amendment to the relevant social welfare legislation which would be a matter for the Minister for Social and Family Affairs to consider in the first instance.