Jim O'Keeffe
Ceist:47 Mr. J. O'Keeffe asked the Minister for Social, Community and Family Affairs the proposals, if any, he has to ease and simplify the means-test for smallholders and fishermen. [16490/97]
Written Answers - Assessment of Means.
It is assumed the Deputy is referring to the means test for the unemployment assistance scheme.
In assessing means for unemployment assistance purposes account is taken of a number of items, including earnings as an employee or from self-employment, capital i.e. deposits in financial institutions or property (other than claimant's residence) which is leased or rented, and income from use of property e.g. smallholding.
Accordingly, where a farmer or self-employed fisherman applies for unemployment assistance, account is taken of the value of the net income derived from either fishing or farming, less the expenses actually and necessarily incurred in producing that income. For example, in the case of a smallholder, sales of milk, livestock, crops and subsidy payments, such as headage payments, will account for gross income, while expenses may include such items as the cost of fertilisers, veterinary expenses, interest on borrowing for farm purposes, hired labour, repairs to farm buildings and machinery, etc. The balance of gross income over allowed expenses represents means and this is set against the scheduled rate of unemployment assistance payable, on a £1 for £1 basis.
Unemployment assistance for smallholders and other self-employed persons — e.g. boat owners — therefore, acts as an income supplement, akin to the family income supplement for employees.
Fishermen who are employed under a contract of service are insurable for Class A PRSI contributions. In return they are covered for all social insurance benefits, including unemployment benefit during periods of unemployment. However, where such a fisherman is not entitled to unemployment benefit, e.g. does not have sufficient PRSI contributions, they may claim unemployment assistance instead. In such cases, where a fisherman is unemployed for at least three days in any period of six consecutive days, they continue to receive their weekly rate of unemployment assistance, less 60 per cent of their net income from employment. In addition, persons without children will be allowed a £10 disregard for each day worked, while the balance of earnings will be assessed at 60 per cent.
A significant improvement in the means test for smallholders was provided for in 1996 with the introduction of a substantial disregard of up to £2,000 in moneys received by way of the rural environmental protection — REPS — scheme. Any further changes in the means test applying to smallholders and fishermen would have cost implications, would have to be considered in a budgetary context and in the light of available resources and existing priorities.