Gama secured 70% of PAYE relief scheme

A Turkish construction company accused of exploiting migrant workers has been the major beneficiary of a scheme exempting employers…

A Turkish construction company accused of exploiting migrant workers has been the major beneficiary of a scheme exempting employers from paying social insurance for employees from abroad.

Just over 70 per cent of the exemptions granted under the scheme since the start of 2003 were to Gama Construction, figures supplied to The Irish Times reveal.

The Department of Social and Family Affairs, which provided the figures on request, says it cannot explain why such a high proportion of the exemptions were assigned to Gama.

The company itself, meanwhile, confirmed yesterday it has secured nearly €200 million worth of State contracts since its arrival in Ireland in November 2000.

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It had come to Ireland on foot of an invitation to Turkish contractors by "some members of the Irish government and civil servants" who visited Turkey in June 2000, it said.

It had not specifically been invited by Tánaiste Mary Harney, who was minister for enterprise at the time, the company said in a statement.

Ms Harney has denied having any "hand, act or part" in bringing the company to Ireland.

Labour's spokeswoman on finance, Joan Burton, has called for a Dáil debate "on the Gama issues", including why hundreds of its employees were exempted from paying full PAYE or social insurance.

Exemption from payment of social insurance for a period not exceeding 52 weeks can be granted in respect of the temporary employment of people who are not ordinarily resident in the State.

In response to questions by The Irish Times, the Department of Social and Family Affairs said a total of 1,867 workers have been covered by the scheme since the beginning of 2003.

Of these, 1,324 were employed by Gama Construction. "We have no explanation as to why Gama workers made up such a high proportion of exemption certificates," the department said.

Ms Burton has claimed the PRSI exemptions for Gama were an abuse of an EU scheme specifically designed for workers travelling between member states.

The department, however, said the exemption certificates for Gama were granted under a statutory instrument which is separate to the scheme referred to by Ms Burton.

It also said no representations had been made to the department by any government department or minister to have Gama covered by the exemption scheme.

Turkish employees of Gama also benefit from reduced income tax, as most of their wages are paid directly into accounts in Turkey and the Netherlands.

The Revenue Commissioners said it could not say how many workers in total had benefited from such tax arrangements as it did not keep such statistics.

It declined to say whether any representations had been made to the Revenue to have Gama included in the scheme, as it "does not comment on individual cases".

Gama has been at the centre of controversy since February when it was accused in the Dáil by Socialist Party TD Joe Higgins of paying workers €2 to €3 an hour and making them work up to 80 hours a week.

An investigation was subsequently undertaken by the Department of Enterprise's labour inspectorate, but the process has been challenged by Gama Construction in the High Court.

The company, which denies the allegations against it, said yesterday it had completed five State contracts with a total value of €83 million since its arrival in Ireland, while seven other projects valued at €104 million were ongoing.

Gama had also secured six private contracts worth €120 million.

It has unsuccessfully tendered for a further 30 State and 26 private projects, it said.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times