Vol. 402 No. 10
7 Mr. Byrne asked the Minister for Social Welfare if he intends to take any action to deal with the anomalous situation of a person employed on social employment schemes, with regard to their PRSI status; and if he will make a statement on the matter.
The social employment scheme provides part-time employment consisting of two and a half days a week for long term unemployed people in non-commercial socially desirable projects which are sponsored by local authorities, community groups and others. Those eligible to participate in the scheme must be over 25 and have been in receipt of unemployment benefit or assistance for at least 12 months.
Participation is limited to one year and while on the scheme the person pays a reduced rate of PRSI contribution providing cover for occupational injuries only. However, in order to maintain the person's insurance record, a special credited contribution is also granted which is reckonable for all benefits and pensions.
A person participating in the social employment scheme, therefore, does not suffer any loss in relation to future claims to benefit.
I am sure the Minister is fully aware at this stage of the dissatisfaction felt by social employment scheme workers. Is the Minister not aware that these people believe that they are neither workers entitled to a serious wage nor social welfare recipients? They argue, for example — and I ask the Minister to concede this point — that they are low paid workers who are not entitled to family income support, fuel vouchers or back-to-school allowances and that they should be allowed to receive Christmas bonuses, fuel vouchers, etc.
Those on social employment schemes are on a scheme under the Department of Labour. The Government considered that it was desirable to provide the child dependant allowances for those who are on social employment schemes. That was a major step forward in so far as married people with children are concerned. Theoretically, people on social employment schemes are available for and free to work on a week on-week off basis or a half-week basis, as the case may be. It is from that concept that the whole scheme developed. Obviously the scheme is subject to continual review.
In relation to the question asked by the Deputy, we have made arrangements for people on social employment schemes to get credits without paying the full rate. Therefore, they are covered in that respect.
May I ask the Minister if he is aware of the dissatisfaction felt by the sponsors of social employment schemes with regard to the A1 and J1 contributions? Is he further aware that a number of social employment scheme workers have been penalised and have had to have repayments of PRSI which was deducted incorrectly? There is a feeling about that sponsors will no longer consider employing people who receive the medical card because of the extra PRSI payments involved for the sponsors.
That is a separate question. The Deputy is talking now about the position in regard to sponsors of schemes——
In relation to PRSI.
——in the workplace. So far as the individual is concerned, we have made arrangements so that the individual does not have to pay the full PRSI contribution. The sponsors have to pay the employer. I think that is the point the Deputy was getting at. That is a separate question which would have to be considered separately.
I should like to join with my colleagues on my right whose party now seem to be the only party retaining the Left position in our political arena——
Nonsense.
I should like to join with him in bringing to the Minister's attention the concern of both those on social employment schemes and those seeking to employ people on them. As regards the payments to dependent children, would the Minister not accept that there are clearly still immense problems for both the sponsors and the workers in this scheme and that there is a need, in the context of the forthcoming budget, for both him and the Minister for Labour to look at the scheme if it is to be of assistance to society and the unemployed in the way it could potentially be?
That is a wider question but I have noted what the Deputy has said.
Arising from his reply, can the Minister indicate to the House when he made the arrangements for the PRSI credits he described, if he has backdated these credits to the initiation of the social employment scheme, and if they will cover these people in full for pension purposes?
I have explained the actual position. If the Deputy puts down a question on the other matters I will get the information for him. I have explained very clearly that in order to maintain a person's insurance record a special credited contribution is granted which is reckonable for all benefits and pensions——
From what date?
It is granted to all people who are on social employment schemes.
Or ever were.
I have answered the question which was asked. If the Deputy wants to know exactly when that began——
Yes.
——I will communicate with him. I would assume it is there from the time the scheme began in any event.
