Seamus Kirk
Question:275 Mr. Kirk asked the Minister for Social, Community and Family Affairs if he will review the PRSI scheme for share fishermen; and if he will make a statement on the matter. [2542/99]
Written Answers - Social Insurance Scheme.
Following the High Court judgment in the Griffith case in 1992, share fishermen were regarded as self-employed contributors for the purpose of social insurance contributions.
To assist share fishermen who suffered a reduction is social insurance cover following the change in their PRSI status, an optional scheme of social insurance – Class P – was introduced in 1994. This scheme gives share fishermen the option, on the payment of an additional contribution, of enhancing their social insurance cover over and above that available to other self-employed persons. Payment of the additional contribution provides limited cover for disability benefit and unemployment benefit as well as full cover for treatment benefits.
In 1997, the Department reviewed the social insurance arrangements of share fishermen in the light of representations and consultations with fishermen and their families. As a result revised arrangements for share fishermen were announced by my predecessor.
The new arrangements provide that share fishermen who are employed under a contract of service i.e. where an employer/employee relationship exists, are fully insured for PRSI purposes and, therefore, eligible for the full range of benefits. Share fishermen who are employed on a partnership basis are insurable as self employed contributors and pay PRSI at Class S. Access to the optional scheme continues to be available to such self employed share fishermen. My Department produced a fact sheet in 1997 which outlines the PRSI position in detail and, in particular, the factors to be taken into account when deciding if a contract of service or partnership arrangement exists.
Boat owners, skippers and the people working in the industry are now at liberty to negotiate and operate their own work contracts. Whether these contracts give rise to self-employment or employment depends on the contract negotiated between the individuals concerned. Once these contracts are negotiated the social insurance position which applies is similar to that which applies to any employee or self employed person.
The current arrangements means that people in the share fishing industry now have the ability to arrange their work contracts in order to avail of a wide range of social insurance benefits. The level of take up of the optional scheme has been poor and the latest statistics indicate that there are currently only some 31 contributors.
In the event of a disagreement regarding the correct PRSI position my Department investigated the nature of the contract and a deciding officer will decide the nature of the contract on the basis of the facts as presented. If any party is dissatisfied with the decision there is a right of appeal to the independent Social Welfare Appeals Office. I understand that a number of such appeals have been submitted and are due to be held shortly.
Both myself and my officials continue to be in regular contact with representatives from all interested parties in the share fishing sector, including employers, employees and the self employed on this matter. It is my intention to meet with representatives of Irish South and West Fishermen's Organisation later this week.
The question of reviewing the current arrangements may be considered in the future in the ongoing consultations with interested parties, further experience of the current arrangements and any new developments.