Abolishing the RCT system of subcontracting on building sites would lead to an increase in black economy activity in the construction industry, according to the Minister for Finance.
Mr McCreevy was responding to Mr Tommy Broughan (Lab, Dublin North East) who said there was an urgent need to end the current so-called C45 system. Mr Broughan said that many thousands of construction industry workers wanted to be taken on directly as employees and to pay PAYE rather than as self-employed subcontractors who had no sickness or holiday benefits.
Mr McCreevy said, however, that the Revenue Commissioners campaign to investigate possible abuses in the system would be effective in regularising the employment status of individuals in the construction industry.
There were currently about 35,000 employees in the construction industry compared to about 21,000 certified subcontractors and 12,500 uncertified subcontractors. The majority are in the PAYE system.