Written Answers. - Share Fishermen's Benefits.
Jim O'Keeffe
Question:
67
Mr. J. O'Keeffe
asked the
Minister for Social Welfare
if his attention has been drawn to the circumstances of many crewmen on fishing boats around the country who find that they are getting virtually no income for many months due to bad weather and at the same time are not able to qualify for unemployment assistance because of earnings assessed on previous fishing activity which is now classified as self-employed; and if he will examine the case of a person (details supplied) in County Cork and ensure that the appeal against the refusal to pay him unemployment assistance is disposed of straight away on the basis that he has no income at present rather than on the basis of earnings which he achieved a year ago.
In the past, share fishermen were regarded as employees for social insurance purposes and as such were insured for the full range of social insurance benefits. Their insurability status changed however following certain court decisions to do with the owners of fishing vessels.
As a consequence, share fishermen could no longer be regarded as employees for social insurance purposes in the absence of a contract of service. They then became insured as self-employed people and as such are covered for Widow's and Orphan's and Old Age (Contributory) Pensions. They no longer had cover for unemployment and illness.
Following on the decision of the High Court, I met with representatives of the Irish Fishermen's Organisation (IFO) and the Killybegs Fishermen's Organisation (KFO) to discuss their concerns regarding the absence of cover for short term benefits. Share fishermen are in a unique position in so far as social insurance is concerned. Prior to the court decision in 1992, they were always insured as employees and thereby entitled to the full range of social insurance payments. Through no fault of their own and without any change in the way in which their work is organised, they ceased to be so insured. The harsh nature of Irish weather conditions for fishing and local tie up arrangements and quotas leave share fishermen open to enforced periods of unemployment at certain times of the year. The difficult conditions under which they work also expose them to increased risks of illness. In the light of these considerations I introduced legislation in the form of the Social Welfare (No. 2) Act, 1993 to provide share fishermen with this vital cover.
Under the new legislation, people whose principal means of livelihood is derived from share fishing now have the option of paying additional special contributions, if they have income of at least £2,500 per year. Share fishermen who opt into the new scheme will pay special contributions. These contributions will amount to 5 per cent of their income in the previous income tax year.
Contributions will be payable up to the PRSI earnings ceiling, currently set at £20,000 per year. A minimum annual contribution of £250 will apply. For these contributions, share fishermen will get disability benefit for up to 12 months in any continuous period of illness and unemployment benefit for up to 13 weeks in any one year.
The new optional contributions will be payable from the income tax year commencing 6 April 1994 and will bring the share fishermen into benefit from Janaury 1996. I have also made a special arrangement within the scheme so that share fishermen who apply to my Department before the end of June may pay their PRSI contribution in respect of the 1993-94 tax year, thereby bringing forward their benefit cover to January 1995.
For unemployment assistance purposes share fishermen are treated as self-employed and their net earnings are assessable as means. Details of a person's earnings in the previous year provides a reference or starting point for the assessment of means for self-employed persons such as share fishermen.
In this particular case, following investigation, the person concerned was assessed by a deciding officer with means of £169 per week with effect from 5 May 1993. The means assessed were derived from his self-employment as a share fisherman. As this level of means exceeds the maximum rate payable in his case, he is not entitled to payment. This decision was upheld by an independent appeals officer in September 1993.
The person concerned made a further application for Unemployment Assistance on 9 December 1993. His circumstances were reviewed and his means were again assessed at £169 per week, again based on his most recent level of earnings. He appealed the decision of the deciding officer on 16 February 1994 and his case has been referred to the Social Welfare Officer for reassessment of his means before referral to the independent appeals officer.
My colleague, the Minister for the Marine has drawn attention to the difficulties experienced by fishermen at present and has indicated that he is pursuing the possibilities for assistance through a number of avenues including the EU Commission.
