Dáil Éireann debate -
Tuesday, 13 May 1997

Vol. 479 No. 2

Written Answers. - Social Insurance.

Noel Ahern

Question:

272 Mr. N. Ahern asked the Minister for Social Welfare his views on the ongoing problems with workers on the C45 system and their lack of PRSI contributions; the progress, if any, which has been made in regularising this matter; if any special scheme for construction workers can be introduced as was done with fishermen; and if he will make a statement on the matter. [12943/97]

Minister for Social Welfare (Proinsias De Rossa)

In accordance with the Income Tax (Relevant Contracts) Regulations, 1996 introduced by the Revenue Commissioners, the C45 system applies in situations where both the employer and the person being employed have completed a declaration confirming they have satisfied themselves that the contract they propose to enter into is not a contract of employment.

Self-employed workers under the C45 system, in common with other self-employed workers, are compulsorily insurable under the Social Welfare Acts through the payment of Class S social insurnace contributions. They are eligible for benefits as follows:

Widow's/Widower's (Contributory) Pension

Orphan's (Contributory) Allowance

Old Age (Contributory) Pension.

Contributions as self-employed persons, Class S do not reckon for any short-term benefits under the Social Welfare Acts. To extend the range of benefits payable would mean an appreciable increase in the rate of contributions.

The issue relating to fishermen is a distinctly different issue. This was a situation where the work of sharefishermen and women, were classified as contracts of work and thereby dealt with as self-employed. This classification arose due to Government decisions on the matter. They are now treated as employees, where it is clear they are not partners in a boat. This reclassification came about due to a European Court of Justice decision on the issue of sharefishermen.