Dáil Éireann debate -
Wednesday, 10 Jul 1991

Vol. 410 No. 7

Written Answers. - PRSI Rates.

Andrew Boylan

Question:

72 Mr. Boylan asked the Minister for Social Welfare if his attention has been drawn to the consequences of the new PRSI rates relating to part-time workers on the Irish mushroom industry whereby 18.25 per cent will be added to the cost of picking one pound of mushrooms which will result in (1) growers looking at alternative means of harvesting and reducing the number of employees, (2) the growth of the industry being curtailed and (3) exports of mushrooms being less competitive on the United Kingdom market; if he will alleviate this situation by reverting the rates to those pre April 1991 or by providing an exemption for the industry; and if he will make a statement on the matter.

Minister for Social Welfare (Dr. Woods)

Since 6 April 1991 full social insurance has been introduced for part-time workers. The effect is that all workers, in all industries and sectors, earning £25 or more in a week, irrespective of hours worked, now have entitlements to important social welfare benefits such as disability benefit and widows and old age pensions.

The standard class A rate of social security contribution is 5.5 per cent for employees and 12.2 per cent for employers. If, however, an employee earns £60 or less per week, he or she is exempt from a social insurance deduction for that week. The cost to the employer or providing this social insurance for an employee will be £3.05 per week at the £25 level and £4.88 per week at the £40 level of wages.

Officials of my Department recently met with representatives of the Irish Mushroom Growers' Association at which the PRSI liability position was outlined and arrangements were agreed for the collection of PRSI contributions from mushroom growers.

The Government are conscious of the need to keep employer costs in industry under control. However, the employer social insurance contribution here is one of the lowest in Europe. PRSI contributions are an integral part of the social welfare system, reflecting the need for comprehensive protection for workers and their families.

I could not agree to any change which would disadvantage these employees in such a fundamental way.