Dáil Éireann debate -
Tuesday, 25 Nov 1997

Vol. 483 No. 3

Written Answers. - Community Employment Schemes.

David Stanton

Question:

309 Mr. Stanton asked the Minister for Social, Community and Family Affairs the reason his Department has opted to convert a person (details supplied) in County Cork who had just completed a community employment scheme from class J PRSI to class A PRSI even though the person had never applied for the conversion and had been given the choice and had opted to remain at class J; the difference, if any, this made in relation to allowances and so on; the number of people nationwide who will be affected by this policy. [20199/97]

Minister for Social, Community and Family Affairs (Mr. D. Ahern)

The introduction of Class A PRSI for community employment — CE — workers commencing such employment on or after 6 April 1996, was provided for in the Social Welfare Act, 1996. Provision was also made for existing CE workers, that is those who had commenced their scheme prior to 6 April 1996, to be given the option of paying class A PRSI, if they wished, or of continuing with their existing class J PRSI.

I understand that the person concerned was awarded three one year CE contracts by FÁS commencing in August 1994 and finishing in August 1997. Since he was on the second of those contracts when class A was introduced, he was given the option of continuing on class J and chose to do so. However, when he commenced the third year of CE on 5 August 1996, my Department was obliged to take account of the notification by FÁS that this represented a new contract. Accordingly the appropriate rate of PRSI payable with effect from the commencement of this contract was class A.

One of the effects of the introduction of class A PRSI for CE workers is that those workers who revert to the live register may qualify or requalify for unemployment benefit as a result of having paid at least 13 class A PRSI contributions. In such cases, the earnings in the relevant tax year will determine whether he receives a graduated rate or the full rate of unemployment benefit. Persons entitled to a reduced or graduated rate of unemployment benefit are entitled to claim unemployment assistance if it is more beneficial to them. However, long-term unemployment assistance is not payable where the claimant is entitled to full rate unemployment benefit. The social welfare secondary benefits, comprising the Christmas bonus, free fuel allowance and butter vouchers, are payable only with long-term social welfare payments. Unemployment benefit claimants do not therefore have an entitlement to these benefits.

Since the individual circumstances of CE workers will vary from case to case, it is not possible to say how many people will come into the same category as the person concerned.