Gilmore backs Burton over higher PRSI

Debate over the budget was reignited as Eamon Gilmore defended a minister’s comments that employers should further help plug a €1.5bn hole in the social insurance fund.

The Labour leader stood over remarks by Joan Burton, the social protection minister, that PRSI contributions for the social insurance fund needed to be increased.

Ms Burton made the remarks at the Tom Johnson Summer School in Kilkenny on the weekend.

She said social security contributions in Ireland were “meagre” compared to our EU counterparts. In Ireland, they represented 5.8% of GDP compared to an EU27 average of 10.9%, she said.

Ms Burton also suggested that further taxation measures could rake in more funds for the exchequer. She said there was a need to address the taxation of the wealthy, tax shelters, as well as capital gains tax.

Mr Gilmore told RTÉ yesterday that his minister had the right to raise concerns about the €1.5bn gap in funding in the social security fund.

“Just as any minister in their portfolios will address issues within their particular remit, Joan Burton is addressing the issue of the social insurance fund.”

He said that her speech reflected the concern about the fact that contributions to the fund did not match the payments that have to be made to welfare claimants.

“It would be strange as minister for social protection if she weren’t addressing that issue.”

Ministers were warned by the Taoiseach last week to stop talking about the budget publicly before December.

Meanwhile, Brendan Howlin, the public expenditure minister, said at the weekend that he backed the idea about a banking inquiry and was in talks about one.

“I still believe there is merit in pursuing an inquiry based on the existing statutory position. Since the referendum result I have been in discussions with the Office of the Attorney General regarding the potential parameters of such an inquiry.”

The Oireachtas Public Accounts Committee is expected to this week reveal details about its efforts to investigate events surrounding the night of the controversial bank guarantee agreed in Sept 2008, which will include plans to quiz former Taoiseach Brian Cowen and former bankers.

It was also reported yesterday that the Government intends to ask for the repayment of €32bn in bank debt that it paid to recapitalise Allied Irish Bank, Bank of Ireland, and Irish Life & Permanent. Finance Minister Michael Noonan would talk to EU colleagues next week about the plan, which it is hoped will secure the backing of the bailout troika, the Sunday Times said.