I move:
That Dáil Éireann approves the following Regulations in draft:—
Social Welfare (Insurance Inclusions and Exclusions) Regulations, 1988
a copy of which Regulations was laid before Dáil Éireann on 22nd March, 1988.
The purpose of these regulations is to extend social insurance cover from 6 April 1988 to ministers of religion, members of religious orders, doctors, dentists and certain employees of local and public authorities employed under a contract of service. This is necessary as a consequence of the extension of social insurance to the self-employed. I thank the Deputies on the opposite side for agreeing to take this regulation which is necessary in conjunction with the main Bill which is being considered at present.
The persons concerned are specifically excluded from social insurance cover at present. This means that even if a person in one of these categories is employed under a contract of service, such as, for example, persons in Holy Orders who are teachers, nurses, etc. or doctors and dentists employed by hospitals, they are not covered by the system. There are historical reasons for excluding these various categories but their position has to be reviewed in the context of the new situation where social insurance is being extended to the self-employed. Continuing to exempt these categories from social insurance as employed persons could not be justified when their colleagues who are in self-employment and who pay income tax under Schedule D are being brought into the new extended system.
The reason for the general exception of religious from social insurance cover stems from the fact that it was felt that persons in Holy Orders or in religious life are not regarded as employees in the accepted sense when carrying out the work or duties of their offices, even though some are paid a stipend or salary. There was also the consideration that the majority of such persons were celibate priests, brothers and nuns who do not have dependants and are not exposed to the kinds of risks to which ordinary insured persons are exposed. In the case of medical and dental practitioners it was felt that they would only be in employment for a very short time, as the majority would go into private practice after a few years and, therefore, it was decided that it would be inequitable to impose a social insurance liability on them for a short period for which they would not derive permanent benefit. They would be doctors working in hospitals, prior to going on to some other employment perhaps in the private sector.
Under arrangements made in 1974, certain classes of ministers of religion or other members of religious communities can be brought into the social insurance system where a representative body indicates that their exclusion is unreasonable and the Minister is satisfied that this is the case. On foot of this provision ministers of the Church of Ireland have been brought into social insurance at the Class E rate of PRSI contribution in respect of their pastoral employment and are, accordingly, covered for all social insurance benefits, with the exception of unemployment and occupational injuries benefits. No other group of clergy or religious has made representations since 1974 for inclusion in the social insurance system.
Under the new extended social insurance system for the self-employed, clergy and other religious who are in receipt of reckonable emoluments or income, which are defined in the Social Welfare Bill, 1988, will become compulsorily insured for old age and widows pensions. It would, therefore, be clearly anomalous to continue to exclude from compulsory social insurance those clergy and religious who are employed under contract of service, i.e. religious employed in schools, universities, hospitals, etc. This regulation now provides for their inclusion in the social insurance system as employed contributors. This is in line with the recommendations of the Commission on Social Welfare in the matter.
In addition to ministers of religion, employed persons who are doctors or dentists and certain local and public authority employees are also being brought into the social insurance system for the first time. Such categories have been excluded from compulsory social insurance since 1953 when the unified social welfare system was established. Social insurance cover was extended to doctors and dentists in the Defence Forces in 1985. This was by special request and the extension was provided for them.
It was felt at that time that the question of extending social insurance cover to other doctors and dentists employed, for example, by health boards and other local and public authorities should be considered in the context of extending social insurance cover to all doctors and dentists, including private practitioners. Following the extension of social insurance to the self-employed, doctors and dentists who are in private practice are now being brought into the social insurance system as self-employed contributors. As a consequence it would be anomalous to continue to exclude all medical and dental practitioners who are employed under contract of service from compulsory social insurance cover and these regulations also provide for their inclusion as employed contributors. This also is in line with the recommendations of the Commission on Social Welfare.
It is the first time that doctors and dentists will come into the PRSI scheme. This regulation will ensure that those who are in employment, or under a contract of service, in addition to those who are self-employed, will come in at the same time.
Part I of the First Schedule to the Social Welfare (Consolidation) Act, 1981 specifies the employments which are insurable under the Social Welfare Acts. Part II of that Schedule specifies employments which are excepted from being insurable. The purpose of this regulation is to delete references in Part II to employment where the employed person is a minister of religion or a member of a religious community, employment as a doctor or dentist and certain employees of local and public authorities. The deletion of these categories from the list of excepted employments means that, where they are employed, they will automatically fall into Part I of the First Schedule, thereby becoming covered for social insurance as employees.
The existing paragraph 12 of Part I of the First Schedule which refers to ministers of religion is being deleted as it is no longer relevant in the present context. However, it is being replaced by a provision which will designate clergy and other religious as a specific category of employee. This is necessary in order to maintain the current Class E status of those ministers of religion who are already included in the system and it will also enable the provisions of the Social Welfare Acts to be modified in respect of this category of persons should this be necessary in the future. It is estimated that approximately 9,000 employed persons will be brought into the social insurance system as a result of the provisions in these regulations.
Under subsection (6) of section 5 of the Social Welfare (Consolidation) Act, 1981, these regulations may not be made until a resolution approving the draft regulations has been passed by both Houses of the Oireachtas. I am happy to recommend the draft regulations to Dáil Éireann.