§ Sir Michael GryllsTo ask the Secretary of State for Social Security what consultations he undertook with the housebuilding industry prior to the publication of the booklet entitled, "Are Your Workers Employed or 185W Self-Employed"; what representations he has received from housebuilders since the publication of that booklet; and if he will make a statement. [8553]
§ Mr. HealdA wide range of representative bodies from the construction industry, including the housebuilding industry, were involved in joint consultations with officials from the Department and the Inland Revenue before the publication of the booklet.
Since October 1995 we have had numerous representations and meetings at official and ministerial level from the industry. Details of the help provided for the construction industry on employment status are set out in a joint Inland Revenue and Contributions Agency press release issued on 19 November 1996, copies of which are available in the Library.
§ Sir Michael GryllsTo ask the Secretary of State for Social Security if he will make it his policy to consult(a) the Housebuilders Federation, (b) the Manufacturing and Construction Industries Alliance and (c) other bodies representing the interests of housebuilders and their workers, before making any changes to the convention that construction operatives in the housebuilding sector are considered as self-employed for national insurance purposes. [8556]
§ Mr. HealdWe have already developed contacts with a wide range of representatives bodies from the construction industry, including groups representing members of the housebuilding industry. We will continue to work closely with these contacts on the issue of employment status in the industry.
§ Sir Michael GryllsTo ask the Secretary of State for Social Security what assessment he has made of the costs for employers in the housebuilding sector of the recent ending of self-employed status for construction operatives, in terms of(a) employers' national insurance, (b) employees' national insurance, (c) other taxes; and (d) administrative and payroll costs. [8554]
§ Mr. HealdIt is incorrect to say that self-employed status has been ended for construction workers. As in other industries, contractors will continue to be free to take on workers as self-employed where the terms and conditions of engagement reflect genuine self-employment.
§ Sir Michael GryllsTo ask the Secretary of State for Social Security for how many years construction operatives in the housebuilding sector have been considered to be self-employed for national insurance purposes; when, by whom and for what reasons the decision was taken to change that status; and if he will make a statement. [8555]
§ Mr. HealdSince 1980, the administrative practice of the Department has been to accept that the issue by the Inland Revenue of a 714 certificate or deduction from payments under the SC60 scheme were evidence of self employment. Following representations from the construction industry claiming that many workers treated as self-employed were really employees, the Inland Revenue and Department of Social Security prepared new guidance for the industry about employment status. This made it clear that whether someone is employed or self-employed depends on the terms of engagement not the issue of a 714 certificate.