Vol. 456 No. 4
19 Mr. Clohessy asked the Minister for Social Welfare the progress, if any, made by the interdepartmental group on the imposition of PRSI and levies on maintenance payments from husband to wife; and if he will make a statement on the matter. [11925/95]
Discussions and consultations have taken place involving officials of my own Department, the other interested Departments — Finance, Health, Enterprise and Employment — and the Office of the Revenue Commissioners on the issue of payment of PRSI and levies on maintenance income.
A consensus emerged from these discussions that no changes should be made to the treatment of social insurance contributions on the grounds that they form the basis of individual entitlement to social welfare benefits.
It was agreed, however, that the health contribution and the employment-training levies should not be imposed on that part of the payer's income which is paid to his-her separated spouse under an enforceable maintenance contract. This exemption was implemented in the Social Welfare Act, 1995, with effect from 6 April 1995. This brings the treatment of the levies into line with that of the tax system.
Social insurance contributions confer substantial benefits on the contributor and ensure an adequate level of social protection. For this reason, I believe that the arrangement whereby recipients of maintenance payment make social insurance contributions is equitable. The effect of both spouses making a PRSI contribution is that each spouse builds up a social insurance record in their own right, and can each, in due course, qualify for a pension.
I believe that entitlement to a social insurance pension is a valuable right. I feel that coverage under the system should be extended as widely as possible and should afford protection to separated spouses. It is, therefore, appropriate that a social insurance contribution be levied on income from maintenance.
