Tom Fleming (Kerry South, Independent)
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Question 119: To ask the Minister for Social Protection if she will examine the position of the self-employed who have made income tax returns over the past ten years; if she will grant credits for unemployment benefit and contributory pension purposes to these persons in view of the fact that unless a scheme of this nature is introduced with retro active effect, it will have no benefit to those self employed people who are currently unemployed or have become unemployed over the past number of years; and if she will make a statement on the matter. [8990/12]

Joan Burton (Dublin West, Labour)
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PRSI credited contributions are an integral part of the social insurance system. For the most part they are linked to having an underlying entitlement to a social welfare payment while temporarily detached from the labour force or having entitlement to statutory leave. The primary purpose of PRSI credits is to secure social welfare benefits and pensions of employees by covering gaps in insurance where they are not in a position to pay PRSI such as during periods of unemployment, illness, etc.

The class at which a contributor paid his or her last PRSI contribution determines entitlement to credited contributions. Credits are awarded in respect of an employment contribution which is defined as a contribution in respect of an employed contributor. There are no provisions for the award of credits on foot of self-employment contributions. Self-employed individuals who wish to preserve the continuity of their social insurance record for pension purposes have the opportunity to do so by becoming a voluntary contributor.

Any changes to the PRSI system to extend the full range of social insurance benefits, including access to credited contributions would have significant financial implications and would have to be considered in the context of a much more significant rise in the rate of contribution payable. I established the Advisory Group on Tax and Social Welfare last year to meet the commitment made in the Programme for Government. The Advisory Group will, inter alia, examine and report on issues involved in providing social insurance cover for self-employed persons in order to establish whether or not such cover is technically feasible and financially sustainable. In addition, the Actuarial Review of the Social Insurance Fund, which is due to be completed in mid-2012, will examine this matter.