Government will not 'hound' NI defaulters

The government did not plan to hound companies which fell behind with National Insurance contribution payments, Finance Minister Tonio Fenech told The Sunday Times yesterday.

Mr Fenech said: "It is in nobody's interest to take drastic action against those suffering from cash flow because of the international crisis, especially in the hotel and manufacturing sectors. Nevertheless, though we're giving some space, the dues have to be paid."

The minister revealed in Parliament last week that over 17,000 self-employed people fell behind in contributions between 1999 and 2007, totalling €43.6 million in outstanding NI.

He said the international crisis had contributed to the list of National Insurance defaulters.

The minister said there was no cause for alarm, however, saying that the vast majority of defaulters paid their dues within a month or two.

Though the outstanding NI contributions have not increased significantly over the years, any delays in payments effectively put pressure on government finances.

Mr Fenech maintained that the government would still take legal action against individuals who had no valid reason for defaulting.