Submission by the Self Employed Alliance (SEA) Dundalk to the Dail Committee on Education
& Social Protection.
Firstly we wish to thank the committee for inviting back to further highlight our case. Where it
is clear and still to this day how the Self Employed compared to the PAYE sector are treated in
an unequal, unfair and inequitable way.
I believe we all strive, want, need, aspire to a fair, equal, just, transparent working society for all
without out discrimination or a two tier society.
Yet as we have outlined in detail from our previous submission inequality and discrimination
still exists to this day for self employed individuals:
Recently one of our members in the last six weeks had to let his only two members of staff go
after two years working for him. They both went to the Social Security and registered and
were in receipt of all supports & services within a very, very short period of time, enabling to
sustain some semblance of a lifestyle.
When the self employed owner whose business had ceased went down to the same social
security office seeking help and support – nothing. Essentially he was interrogated and asked
about potential Assets to which he had none other than his home. Was asked for two years
past account so as they could be scrutinised. Informed that after some time an assessment
officer would by appointed to examine his circumstances etc.... This individual has literally
got nothing as all his time, funding & effort went into the business yet unfortunately his
business failed.
Yet during the course of his time in business he paid all his rent, rates, staff etc.... in doing so
this in turn generated revenue for staff families which in turn circulated to the benefit of the
local economy, Now this same individual is left high and dry and quite clearly is treated as a
second class citizen !!!!
This system is in its current form is clearly not fit for purpose and quite clearly treats self
employed in a discriminatory and unequal way. Clearly there are simple and effective
measures that can be implemented immediately to provide a level playing field.
It seems many self employed are deemed to be great when things are going well generating
employment, revenue for all concerned as is pointed out in various reports (CSO) But if
suddenly that self employed individual hits heard times and ceases trading due many factors
all supports, services are either pulled from them and a barrage of unnecessary hurdles put in
place.
It is recognised, acknowledged (CSO info) as with other groups the enormous contribution Self
Employed brings to the Social & Economic Fabric of our Society.
Just a Snap Shot of the Profile of Small & Micro Self Employed contribution we bring to the Irish
Economy :
Small Workplaces (<50 people employed) account for over 60% of the Irish Workforce (2004)
(1,262900 people) of those, almost
940,000 are employees
209,000 are self employed
104,600 are Self Employed with employees.
For Example Small enterprise (employing 1-49 persons) generated more than half of total
turnover in the Service Sector. Turnover of small service sector enterprises increased 65% over
2000-2004 to reach almost Euro 74 Billion in revenues, a not insignificant Revenue stream.
Small Enterprises in the Service Sector employee an average of 5 people. Average Turnover for
small enterprises was just under 900,000 Euro.
In the second quarter of 2006 three quarters of all persons in employment in small work places
were classified as employees.
Just over 8% were classified as Self Employed with paid employees.
Nearly 17% were self employed without any paid employees.
The Number of Enterprises a total of 4418 employing 3 or more people in Ireland (2005) of these
81% accounted for Small Industrial Enterprises (3-49 people) Almost half of these Enterprises
had less than 10 people employed.
At this point I should stress our Alliance representing the Self Employed and its ever growing
numbers Predominately represent as I would call Self Employed (Micro Businesses) employing
somewhere in the region of 3/5 people.
We feel it’s somewhat disingenuous to bundle us in as defined by the CSO (<50)
“An Enterprise which employees less than 50 people”
The Dynamic between a Micro Business employing 3/5 people is significantly different than
those Small Business employing 10 of greater numbers.
Therefore the distinction or a category change is required.
As it’s acknowledged and recognised the Valuable Contribution Self Employed contribute to the
Irish Economy yet still nothing has changed and glaring inequalities remain. In fact on the
horizon appear to be getting worse for the self employed, notably
The looming threat from the Banks, which has in fact past the threat stage and now stopping
loans/overdrafts and calling in overdrafts in particular targeting the Small and Micro Business.
This been allowed to happen will have dire consequences across the entire social & economic
infrastructure of Ireland, especially bearing in mind the figures pertaining to the contribution
Self Employed contribute as a whole. Least we not forget how it was the people/tax payers
ultimately bailed out the Banks.
Still to this day (March 19th) personally having called to the Social Security office in an effort to
establish how as a Self Employed person seeking supports and what supports are available. The
level of ignorance, lack of knowledge & transparency is alarming Not only did I encounter this
but also have spoken with many of our members nothing has changed. Even do back in October
2012 we were told Social Security offices could and would provide pertinent information.
I in fact requested a publication “Your Social Security Rights in Ireland” A guide for EU Citizens
from the Dept of Social & Family Affairs, I was met with black stares. Having eventually located
it on the Web all I can see is two miniscule general references to self employed no information
detail whatsoever.
Mindful of this the incumbent Government is highlighting the flag, encouraging more and more
people to embrace the Self Employed Route & Entrepreneurial Spirit. In part we welcome this
or some of the more cynical might suggest it’s a safety valve because if there enterprise fails
then as legislation stands currently we have to give them little or nothing (The % percentage of
start up failures is very high)
So without any supports/structures or little or none in place for the Self Employed its akin to
Walking the High Wire Without a Safety Net.
So the current Clarion Call by the Politicians encouraging people into the Self Employed route
should come with a Clear Health & Safety Warning
As and finally since we submitted our 17 reasons or Disadvantages for Self Employed (Attached)
nothing has changed and in fact as pointed out nominally worse.
In accordance with a commitment in the current Programme for Government, The Minister for
Social Protection established an Advisory Group on Tax and Social Welfare in 2011
To examine and report issues involved in providing social insurance cover for self employed
persons in order to establish whether or not such cover is technically feasible and financially
sustainable
The Minister also noted that the question of social insurance cover for the self employed is
being considered in the Actuarial Review of the Social insurance Fund which was due to be
completed in Mid 2012 ???