Marian Harkin (Sligo-Leitrim, Independent)
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Question 358: To ask the Minister for Finance if changes will be incorporated into the forthcoming Finance Bill to ensure that childminders who are availing of the new childminding relief scheme can pay social insurance contributions. [2830/06]

Marian Harkin (Sligo-Leitrim, Independent)
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Question 359: To ask the Minister for Finance if the new childminding relief announced in budget 2006 is based on gross earnings or net income. [2831/06]

Marian Harkin (Sligo-Leitrim, Independent)
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Question 360: To ask the Minister for Finance if childminders will be given the same rights and entitlements as all workers. [2832/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to take Questions Nos. 358 to 360, inclusive, 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 income limit of €10,000 refers to gross income. No deductions will be allowed, for example in respect of expenses, in determining the individual's income level.

The new scheme is not a tax allowance, but is in fact an income disregard of €10,000. Where an individual chooses to avail of this relief, it will automatically follow that the amount earned, once it does not exceed €10,000, will not be assessable to tax or PRSI or levies and will thus be exempt from tax, PRSI and levies. Any change to make the income subject to PRSI under the scheme, either on a mandatory basis or in all circumstances on a voluntary 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.

I understand that the "rights and entitlements" referred to by the Deputy are those derived from payments made under the PRSI system. Again, these are primarily the responsibility of the Minister for Social and Family Affairs.