The main purpose of the Social Welfare (No. 2) Bill, 1993, is to provide for a special scheme of social insurance for share fishermen. The Bill also provides for regulatory powers under which specified employers and contractors may be required to keep a register of employees and subcontractors engaged by them.
In the past share fishermen were regarded as being employed under contract of service and were thereby insured as employees. Their insurability status changed in 1992 following a High Court decision. Arising from this decision they became insured as self employed people and as such are covered for widows and orphans and old age contributory pensions only.
This Bill is designed to overcome the problems arising from the High Court decision by providing share fishermen with optional insurance for unemployment and illness. Part I of the Bill contains the usual provisions for short title, construction and interpretation. Part II provides for the optional scheme of social insurance for share fishermen. People whose principal means of livelihood is derived from share fishing will have the option of paying additional special contributions if they have an income of at least £2,500 per year.
Those who opt into the scheme will be liable for a contribution of 5 per cent of their annual income in the previous income tax year up to the PRSI earnings ceiling of £20,000 per year. A minimum annual contribution of £250 will apply. The new optional contributions will be payable from the income tax year commencing 6 April 1994 and will be collected directly by the Department. Share fishermen who opt into the new scheme proposed by the Minister will be entitled to disability for up to 12 months in any continuous period of illness. They will also be entitled to unemployment benefit for up to 13 weeks in each calendar year.
Part III of the Bill provides for regulatory powers under which specified employers and contractors may be required to keep at a specified place a register of all employees and subcontractors engaged by them. The Minister made known on Second Stage that he proposes to use these powers initially to require employees in the construction industry to keep records of employees and of contractors and subcontractors engaged by them. These records will be available for inspection by social welfare inspectors.
The Minister also made known on Second Stage that he proposed to introduce two amendments on Committee Stage. The first amendment is a welcome development under which volunteer development workers will become entitled to the full rate of unemployment benefit and disability benefit on their return to Ireland. This provision will apply in the case of development workers who would otherwise qualify for reduced rate benefits.
The second amendment to which the Minister referred is a technical amendment to the Pensions Act, 1990. The purpose of the amendment is to confirm that the selection of trustees by members of occupational pension schemes requires the majority of members of the scheme who vote rather than a majority of the members of the scheme.
Prior to consideration on Committee Stage of the Bill it should be noted that in addition to the Minister for Social Welfare, amendments have also been tabled by Deputy Doyle, Deputy Allen and Deputy Clohessy.