Joanna Tuffy (Dublin Mid West, Labour)
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To ask the Minister for Social Protection the up to date position with the report/findings of the advisory group set up by her Department to examine tax and social welfare; and if she will make a statement on the matter. [3354/13]

Patrick O'Donovan (Limerick, Fine Gael)
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To ask the Minister for Social Protection further to Parliamentary Questions Nos 495 and 548 of 16 January 2013, the date on which the advisory group on tax and social welfare is due to report to her; if she will provide this Deputy with the terms of reference of the advisory group; the details of the membership of the group to include their profession and occupation; if there are representatives of the self employed sector on the group; if the group have engaged with self employed groups or persons; if so, to what extent; if they have sought submissions as part of their work; the number of times the group has met; and if she will make a statement on the matter. [3419/13]

Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 145 and 155 together.

Creating jobs and tackling poverty are two of the key challenges that Ireland now faces and it is essential that our tax and social protection systems play their part in addressing these issues. To this end, and in line with commitments contained in the Programme for Government, I established in June 2011 the Advisory Group on Tax and Social Welfare, with the aim of harnessing expert opinion and experience to examine a number of specific issues and make cost effective proposals for improving employment incentives and achieving better poverty outcomes, particularly child poverty outcomes. To date the Group has held 22 meetings.

In its Terms of Reference, the Group has been asked to examine a number of specific issues and make recommendations on them, including child and family income supports, working age income supports, the appropriate unit of assessment in both the tax and social welfare codes, the interaction of the tax and social welfare codes, issues concerning social insurance for self-employed people and any other issues that may be referred to the Group, which includes the Budget 2012 proposals concerning Disability Allowance and Domiciliary Care Allowance. The Group’s overall method of working is based on producing modular reports on the priority areas identified in the terms of reference. The full terms of reference are set out below.

The Advisory Group is chaired by Ms Ita Mangan, a barrister with considerable experience in public policy. Members of the Advisory Group have expertise from economic and social policy and other relevant areas, and are drawn from within and outside of the public sector. In line with a practical, problem-focused and evidence-orientated approach, they are appointed to the Group on the basis of their expertise and not as representatives of specific sectors. The current membership of the Group is set out below, together with details of their professions.

Interested organisations, stakeholders and individuals are periodically invited to make submissions in respect of each work module, offering an opportunity to make proposals on the topics covered in the Terms of Reference. I understand that submissions made to the Advisory Group are an important source of views for the Group in fulfilling its mandate and in assisting its deliberations. With regard to the work module relating to social insurance for the self-employed, I understand that 30 replies were received from a variety of groups and individuals, a number of whom are self-employed.

The Group commenced its work programme by prioritising the area of family and child income supports and submitted its report to me during 2012. Since then, I have been considering the Group’s findings and have held discussions with my Ministerial colleagues on the issues raised in the report. I intend to formally bring this report to Cabinet in the near future and thereafter publish it subject to agreement. The Advisory Group also submitted to me in 2012 its report on the Budget 2012 proposals concerning Disability Allowance and Domiciliary Care Allowance and I intend to publish this report in the near future.

Among the issues that the Group is currently considering are the 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. The Group will submit its report on this issue to me once its examination of the various questions has been completed. The Advisory Group is also currently examining the issue of working age income supports and the interaction of the tax and social welfare systems and I expect that the group will complete its work on this module as quickly as possible.

Advisory Group on Tax and Social Welfare - Terms of Reference

1. The Government agreed the following Terms of Reference for the Advisory Group:

a. To constitute a forum to which the Minister for Social Protection may refer specific issues around the income supports and tax systems so that they provide good incentives to take up work and to contribute to the reduction of poverty and child poverty in particular. In particular, the Advisory Group will examine the following specific issues and make recommendations on:

i. Child and family income supports (in particular child benefit, increases for qualified children and the family income supplement);

ii. Working age income supports (including unemployment payments and similar payments made by other agencies, one parent family payment, one parent family tax credit, back to work tax credit, increases for adult dependants as well as secondary benefits such as medical cards and rent and mortgage supplementary payments);

iii. The appropriate unit of assessment in both the tax and social welfare codes;

iv. How to address identified anomalies in the interaction of tax and social welfare codes.

c. To examine and report upon how to improve interaction between the tax, social welfare systems and other supports so as to improve the operation of both in a cost-effective way and in the delivery of positive social and economic outcomes;

d. To examine and report upon any other issue that may be referred to the Group by the Minister for Social Protection following consultation with the Ministers of Finance and Public Expenditure and Reform and the agreement of the Minister for Finance on taxation matters.

It is intended that the Advisory Group should consider any proposals for change to existing arrangements in a cost-neutral or cost-reducing context.

2. Following Budget 2012, the Minister for Social Protection, Joan Burton T.D. refers the following additional terms of reference to the Advisory Group:

a. To examine and report on the policy objectives underpinning the Budget 2012 proposals regarding:

i. Changes in the eligibility criteria and rates of payment for Disability Allowance (DA);

ii. The increase in the age threshold for payment of Domiciliary Care Allowance (DCA);

c. To consider alternative ways as to how the policy objectives might be achieved.

Current Membership of the Advisory Group on Tax and Social Welfare

Ita Mangan, Chairman of the Advisory Group (Barrister)

John Bohan, Department of Social Protection (Civil Servant)

Micheál Collins, Nevin Economic Research Institute (Senior Research Officer)

John Conlon, Department of Public Expenditure and Reform (Civil Servant)

Gerry Harrahill, Office of the Revenue Commissioners (Civil Servant)

Catherine Hazlett, Department of Children and Youth Affairs (Civil Servant)

Paul Kealy, Department of Jobs, Enterprise and Innovation (Civil Servant)

Pat Mahon, Pricewaterhouse Coopers (PwC) (Partner in tax services)

Geralyn McGarry, Citizens Information Board (Manager, Social Policy and Research)

Aebhric McGibney, Dublin Chamber of Commerce (Policy and Communications Director)

Brenda McVeigh, Department of Finance (Civil Servant)

Mary P. Murphy, Department of Sociology, National University of Ireland, Maynooth (Lecturer in Irish Politics and Society)

Brian Nolan, School of Applied Social Science in UCD (Principal of the College of Human Sciences)

Marie Sherlock, SIPTU (Economist)

John Sweeney, National Economic and Social Council (Economist)