Willie Penrose (Longford-Westmeath, Labour)
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51. To ask the Minister for Social Protection when the report on the consultation on bogus self-employment and disguised employment will be published; and the policy changes he plans to pursue. [17587/17]

Leo Varadkar (Dublin West, Fine Gael)
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An interdepartmental working group, comprising officials from the Department of Social Protection, the Department of Finance and the Revenue Commissioners, has been examining the issue of disguised or bogus self-employment.

To inform the work of the group, a public consultation on the use of intermediary-type employment structures and self-employment arrangements and their impact on tax and PRSI, was undertaken in 2016. This includes situations where an individual, who would otherwise be an employee, establishes a company to provide his or her services to an employer but who, though classified as self-employed, is dependent on, and under the control of, a single employer. It has been suggested that in some cases these type of arrangements may suit both the employer and the worker concerned but that in other cases employers use the arrangements to the detriment of workers. In both cases, if the arrangement does in fact constitute bogus self-employment, it results in reduced income tax and social insurance contributions. This is something that neither I nor the Minister for Finance are prepared to allow to continue.

Having said that it also has to be recognised that new, and legitimate, forms of working arrangements are emerging as the labour markets adapt to the opportunities presented by digitalisation, broadband communications and globalisation. This includes the emergence of more freelance type working arrangements - known as the gig economy - as well as new forms of trading - known as the sharing economy. While it is important that policy adapts to provide social protection for workers in these new and emerging forms of work it is equally important that it does not unnecessarily stifle social innovation. We have to be careful therefore in the steps that we take to tackle the issues that are arising and it is for this reason that we held the public consultation - to gather views of interested parties and stakeholders.

The consultation received 23 submissions from interested parties, including employers, trade unions, professional bodies and individuals. The working group is preparing a report which will present the views of these organisations and individuals, together with an analysis of the issues arising. I understand that the working group is currently finalising the report.

I look forward to seeing the report and I will then consider, along with my colleague the Minister for Finance, what changes might be required.