Michael Ring (Mayo, Fine Gael)
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Question 549: To ask the Minister for Social and Family Affairs the position, in view of the introduction of smart meters for electricity purposes, in relation to the 350 meter readers who have no entitlement to social welfare benefit; and if she will make a statement on the matter. [27399/08]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The ESB Contract Meter Readers were treated as self-employed for Social Insurance / PRSI purposes. On a number of occasions they have sought to have their employment status changed to that of employee. In 1999 a Deciding Officer, having reviewed their status, decided again that they were self-employed and subject to PRSI at Class S.

The Meter Readers appealed this decision to the Social Welfare Appeals Office. On the 16th January 2002, after detailed consideration of the evidence, an Appeals Officer considered that there had been significant changes in the terms and conditions of the employment of the Meter Readers since 1994 that materially affected the nature of the employment relationship. Two key factors were:

(a) the introduction of new technology by the ESB (data loggers)

(b) the imposition of restrictions on the Meter Readers sending substitutes to carry out the work.

The Appeals Officer concluded that the Contract Meter Readers were employees of the ESB with effect from 1 July 1994 only and liable for PRSI contributions at Class A or J, depending on their level of earnings.

The ESB challenged this decision in the High Court. The High Court upheld the decision of the Department. The ESB has appealed this decision to the Supreme Court. No date has yet been set for a hearing. Therefore, until the outcome of the Supreme Court challenge is known, the employment status of the Meter Readers must remain in abeyance.

In the absence of PRSI contributions Meter Readers have no entitlement to jobseeker's benefit or other PRSI-based welfare payments. They may qualify for jobseeker's allowance if they are unemployed. However, this allowance is subject to a means test.

It is possible that some Meter Readers may have PRSI contributions from other employment that could qualify them for some PRSI based schemes. It is important, therefore that in the event of unemployment or illness that a claim is made and a formal decision given by the department.