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Social Welfare Benefits.

Dáil Éireann Debate, Tuesday - 23 March 2004

Tuesday, 23 March 2004

Questions (638, 639)

Martin Ferris

Question:

637 Mr. Ferris asked the Minister for Social and Family Affairs if she will make a statement on the status of fishermen employed on a share basis and their social welfare benefits; if they are categorised as self-employed or employees; the criteria for classification; and if not self-employed, their entitlements to benefits. [9078/04]

View answer

Written answers

The employment status of sharefishermen for social insurance purposes was considered by the High Court hearing two appeals on a question of law under section 271 of the Social Welfare (Consolidation) Act 1993. A judgement confirmed earlier judgements of the court in the matter and was delivered in October 2001.

The High Court held that sharefishermen who offer their services to boat owners and skippers in the manner that is customary in the industry, that is with payment based on a share of the catch, do so as self-employed co-venturers or partners and are not employed under a contract of service. Therefore, they are not employees. Accordingly, they are insurable at class S as self-employed persons.

Entitlement to benefit for persons insurable at class S comprises the following: widow and widower's contributory pension; orphan's contributory allowance; old age contributory pension; maternity benefit; adoptive benefit; and a bereavement grant.

Sharefishermen who are insurable at class S may also enhance their PRSI cover by availing of an optional scheme of social insurance, class P, that was introduced in 1994. It gives them the option, on 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.

Fishermen who are not self-employed or those who are employees working under a contract of service are insurable at class A. It provides cover for all social welfare benefits and pensions.

Determination of a person's insurable status is carried out by deciding officers under the provisions of section 247 of the Social Welfare (Consolidation) Act 1993. A deciding officer has regard to the relevant statute law, case law and the facts and circumstances of each case when making a determination.

As regards the criteria employed, the High Court has held that fishermen are partners in a "joint adventure" in circumstances where: each weekly voyage is a separate venture and no crew member has a contract that entitles him to take part in any subsequent voyage; crew members do not receive payment of wages for participating in a fishing expedition but become entitled to a share in the net profits, if any; and, most importantly, although the boat owner or skipper engages each crew member, he does not decide what the rate of remuneration will be and is determined by custom and agreement between the parties.

Fishermen who work in circumstances where the three factors mentioned above apply, and are paid solely by a share of the value of the catch, are likely to be self-employed and insurable at class S. Those who are paid by fixed basic wage or salary are more likely to be employees of the boat owner or skipper and insurable at class A.

Where there is doubt as to a fisherman's status, my Department's scope section may be requested to provide a formal determination.

Seán Ardagh

Question:

638 Mr. Ardagh asked the Minister for Social and Family Affairs her views on the qualifying criteria for receipt of payment under the family income supplement, particularly for a person (details supplied) in Dublin 12; and if she can change it so that people in these circumstances benefit in the future. [9079/04]

View answer

Family income supplement is designed to provide cash support for employees on low earnings with families. It preserves the incentive to remain in employment in circumstances where the employee might only be marginally better off than if they claimed other social welfare payments.

As an employment support, it is important that qualification for FIS requires a significant attachment to the workforce. The current minimum level is 19 hours per week or 38 hours per fortnight. A combination of hours worked by both spouses or partners may be taken into account for this purpose.

As a reduction in the minimum number of hours required would run counter to the principal aim of the scheme I have no plans to introduce any changes in this regard.

Question No. 639 answered with QuestionNo. 633.
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