Career civil servants wrote PRSI paper, spokesman says

MR Proinsias De Rossa's political staff had "no hand, act or part" in preparing his Department's document on the Pay Related …

MR Proinsias De Rossa's political staff had "no hand, act or part" in preparing his Department's document on the Pay Related Social Insurance system, a spokesman for the Minister said yesterday.

A Waterford Fianna Fail TD, Mr Martin Cullen, had asked if the document, published in yesterday's Irish Times, was "prepared by Mr De Rossa's five personal advisers who cost in excess of £100,000 per year or whether it has been prepared by the civil servants within the Department".

A spokesman for the Minister for Social Welfare said the 88 page report had been prepared by the career civil servants who comprise the planning unit of the Department. The members of the research unit appointed by the Minister had no involvement.

The Ministerial spokesman's position received backing in a statement last night from the Department of Social Welfare. This described the document as "a draft discussion paper prepared by civil servants".

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In accordance with normal practice, it had been circulated to other departments for their observations.

"This is not an indication of any conflict between departments on PRSI related issues," the Social Welfare statement added.

"It is, in fact, the normal process designed to ensure that the views of other departments can be taken into account in the preparation of a final draft which will then be submitted to the Minister and ultimately will be brought to Government by the Minister prior to publication.

"The Minister hopes that the document will be available in early October."

Mr Cullen said in his statement that the report appeared to be in conflict with the strategy paper on the labour market outlined by the Minister for Enterprise and Employment, Mr Richard Bruton, last April.

He said it was no surprise that unemployment was rising, since departments under Ministers representing different political parties - "particularly Democratic Left and Fine Gael" - were producing "conflicting reports" on how to deal with unemployment.

"The reality of the rainbow government is that the colours may be standing alongside each other but there is no cohesion between the three different parts."

Mr Cullen said it was "astonishing" that the report seemed to suggest there was no link between the high rates of employers' PRSI and the prospect of reducing unemployment.

"This, in my view, simply flies in the face of reality."

He also said the report picked out "selected statistical differences" between the UK and Irish systems to bolster its case.

"This is very disingenuous. The reality of it is that both employees and employers are substantially better off under the UK taxation system than they are under the Irish taxation system. No amount of selected analysis of the UK system can change this fundamental fact."

The present Government had "failed abysmally" to deliver a cohesive policy on unemployment, Mr Cullen said.