Vol. 413 No. 3
6 Mr. Bell asked the Minister for Social Welfare if his attention has been drawn to the serious exploitation of workers in the security industry; the reason he has not introduced regulations which would have the effect of ensuring that all companies pay (a) PRSI and (b) pensions; and if he will outline his proposals to remedy this situation.
A set of comprehensive regulations governing the payment of PRSI by employers is already in operation. Since January 1989 additional regulations apply to the security industry and to a number of other specified industries whereby employers are obliged to notify my Department of the commencement of employment of new employees. I consider that these regulations and the powers they confer are adequate to ensure compliance with PRSI collection and payment.
The Deputy may be referring to some trends on the part of a minority of employers who attempt to evade payment of their share of PRSI. One such area is where the employer unilaterally deems employees to be self-employed contractors. In these circumstances the employees pay PRSI at the self-employed rate which is practically the same as the full PRSI rate; however they would not have cover for all short term benefits.
Another area relates to part-time workers. When the income threshold of £25 per week for full social insurance cover was introduced last April, my predecessor was particularly concerned that employers would not seek to evade payment of their share of PRSI contributions; especially by the introduction of practices which exploited the lower paid. I am watching these practices very closely and will be prepared to introduce additional measures, if required.
The Deputy will be aware that this year my Department have undertaken a campaign of visits to employers to ensure that PRSI is being paid at the correct rate for all employees and that their PRSI affairs are generally kept up to date. This campaign covers employers in all industrial sectors, including the security industry. Up to 15,000 employers will be visited this year.
In relation to pensions for workers, the Deputy will be aware that there is no legal requirement for an employer to operate a pension scheme for his/her employees. Occupational pension schemes are voluntary agreements entered into by employers and their employees designed to provide cash benefits to employees on retirement or to their dependants on the employee's death. If the Deputy has specific types of exploitation in mind I would be glad to have the matter fully investigated.
Could the Minister indicate to the House the total number of persons, both self employed and employed in the PAYE system, who work in the security industry arising from the requirement to notify new employees in that area?
I am not certain I have that information here but I will communicate it to the Deputy.
When did that regulation come into force, that it is a requirement for the so-called security industry to notify the Department of new employees?
I presume the Deputy is referring to S.I. 296 of 1988. These are fairly long regulations. They were made by the Minister on 21 November 1988. I can send the Deputy copies of the regulations.
