Social Insurance Fund Deficit

Dáil Éireann Debate, Tuesday - 13 November 2012

Tuesday, 13 November 2012

Ceisteanna (335)

Catherine Murphy

Ceist:

335. Deputy Catherine Murphy asked the Minister for Social Protection if she will consider introducing a third higher band of employer PRSI contributions on salaries of €100,000 or more; if she will outline the net effect that she believes such a policy would have on both revenue generated and employment; her views on the unusually small contribution which social security taxes make to Irish Government revenues when compared to other European countries; her views on whether there is scope to increase rates on higher incomes; and if she will make a statement on the matter. [50032/12]

Freagraí scríofa

Minister for Social Protection

I am most concerned about the deficit in the Social Insurance Fund (SIF) and one of my key goals is to reform the system of social protection and to put it on a sounder financial footing for the future. In the context of the SIF, Budget 2011 introduced a number of changes to the PRSI system and, in Budget 2012, my colleague the Minister for Finance announced a further widening of the PRSI base from 2013 to cover rental, investment and other forms of income from 2013. Any other proposals to address the sustainability of the Fund will be considered in a budgetary context.