27th March, 2001
Dr. Henry: Many Senators have gone carefully through the Bill. I am a little of the Séan Healy type whose views are well known. I am delighted to have an opportunity to contribute to the debate as I wish to speak about the issue of child care, the one area in which we have not been able to make much progress. I wish to tell Senators about a system I discovered recently in France and wonder if we could initiate a similar system here. There has been talk of a constitutional reason for not allowing tax relief for the cost of child care, elder care or care of handicapped people in the home. Such a system was introduced in France five or six years ago, cheque emploi service, under which an employer can pay a person up to a certain level to work in his or her home. He or she also pays their social welfare contributions and at the end of the year claims back half of the amount paid in tax. An employer can only claim relief on an amount of 45,000 francs, the equivalent of £5,000 or £5,500.
Mr. Doyle: The Senator is using a good rate of exchange.
Mr. Dardis: It is a fixed rate.
Dr. Henry: Yes, 8 francs to the pound. The introduction of a similar scheme here would be a start. The employer would be able to claim back part of the amount paid in tax. Under the system an employer obtains a special cheque book from a financial institution and pays the person concerned to work in his or her home. The system need not be confined only to one person, one could pay a person to do housework in one's home, another person to mind a child, an older or handicapped person for a certain number of hours work per week week, a teacher to give one's child a grind, a gardener and others to do minor repairs. Such persons would be pleased that they would be covered under the social security system.
Mr. Dardis: I hope one could pay a butler as well.
Dr. Henry: I am sure that a butler would be covered. Butlers are in short supply, especially in Ireland. The person concerned would know that his or her social security contributions were being paid. I would have thought that it would be relatively easy to introduce a similar scheme here. I cannot understand why we have not done so. It would not involve a large amount of money on which tax relief would be allowed, but it would be a start and perhaps be of major help to those not in highly paid jobs and who have to work part-time. It would also ensure such people would be included in the social security system. It is fine when a person agrees to do housework or mind children when he or she is 30 or 40 years of age and not concerned about a pension, but when he or is older and realises the value of a contributory pension, they may not be in a position to do anything about the matter.
That is a suggestion the Minister of State should convey to the Minister for Finance. It is a simple request. Could we introduce a similar system here?
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