Dáil Éireann debate -
Thursday, 26 Jan 1995

Vol. 448 No. 2

Written Answers. - Community Employment Scheme.

Máirín Quill

Question:

122 Miss Quill asked the Minister for Enterprise and Employment the reason a person on a community employment scheme has to pay tax in view of the fact that it is a part-time job according to the tax office whereas according to the Social Welfare office of entitlements it is a scheme and people are not entitled to any extra benefits such as family income supplement on a low wage; and the plans, if any he has to reconcile this matter. [1782/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

Community Employment (CE) is a FÁS programme which provides part-time work experience as well as training and development modules for participants. Participants are insurable under Class J of the PRSI system which provides cover for occupational injuries. The participant payment structure associated with CE is similar to the payment structure applicable to unemployment compensation payments i.e. a basic payment is provided for the participant with additional allowances in respect of adult and child dependants. In addition, participants retain those secondary and other social welfare benefits such as butter vouchers, fuel allowance, mortgage relief, medical card, etc. to which they were entitled immediately prior to participating on Community Employment.

With regard to the taxation of CE payments, it is Government policy that all income from whatever source should be assessed for taxation purposes. I should mention, however, that in practice a tax liability only arises in respect of a minority of CE participants, particularly those who have another source of income.

Eligibility for the Family Income Supplement is a matter for the Minister for Social Welfare.