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Dáil Éireann debate -
Thursday, 22 Nov 1928

Vol. 27 No. 5

THE ADJOURNMENT—UNEMPLOYMENT INSURANCE BENEFIT CLAIM.

In order that the House may understand the matter which I wish to raise on the adjournment, I shall read Question 19 on yesterday's Order Paper, and the reply. The question was:—

To ask the Minister for Industry and Commerce whether he is aware that Terence Connolly, Drumgoan, Carrickmacross, an insured person with more than three years' unemployment stamps to his credit, was out of work from the 30th June to the 28th September, 1928; that on the 2nd July he applied for and was refused unemployment benefit; that he appealed against this decision and the Court of Referees upheld his claim; that the Insurance Officer appealed against the decision of this Court, and that a second Court of Referees was set up on the 19th September, which Court again decided in favour of the claimant; that the Insurance Officer had the matter referred to an Umpire for final decision, and that the latter disallowed the claim, and whether he will state the grounds on which the latter decision was based.

The reply from the Minister for Industry and Commerce was:—

Terence Connolly, of Drumgoan, Carrickmacross, claimed unemployment benefit on the 2nd July, 1928, and furnished evidence of unemployment up to and including the 27th September, 1928. The claimant had to his credit in the Unemployment Fund one hundred and thirteen unexhausted contributions, in respect of which he would have been entitled to so many days of unemployment benefit if he was able to satisfy the statutory conditions for the receipt of unemployment benefit, one of which is that he must prove that he is continuously unemployed. On the facts of this case, the Insurance Officer found that this statutory condition was not fulfilled, and accordingly he disallowed the claim.

The claimant, in exercise of his right, appealed to the Court of Referees, which recommended that benefit be allowed. Further enquiries having been made and the fresh information elicited that the claimant on the former occasion had stated his holding of land to be four acres, whereas it is in fact over nine acres, the case was again submitted to the Court of Referees for reconsideration, but the recommendation of the Court on this occasion was the same as on the first.

As the insurance officer was unable to agree with the Court's recommendation, the case was sent to the Umpire, who in giving his decision that the claim must be disallowed stated that the claimant's holding is too large not to provide suitable employment for him when he is not working for wages.

This decision is final.

I wish to draw particular attention to the part of the reply which states: "Further inquiries having been made and the fresh information elicited that the claimant on the former occasion had stated his holding of land to be four acres whereas it is in fact over nine acres——" Were it not for the opinion formed by the insurance officer that the man had supplied misleading information, the question of giving unemployment benefit apparently would not have arisen. If my information is correct, the claimant did not at any time state that he had only four acres of land. He had stated that he had only four and a half Irish acres of arable land. The fact still remains that, when on the appeal of the insurance officer this case was again investigated, with the additional information that the insurance officer was able to procure with regard to the extent of his holding, the Court of Referees upheld the man's claim to benefit. As stated in the reply, the insurance officer appealed against that decision. He certainly meant to ensure that he was not going to be let down. The Court of Referees is not a court that can be particularly favourable to a claimant. The Chairman is appointed by the Minister, I understand, and the Court is constituted from a panel of suitable persons selected by the Minister. The very fact that two Courts in succession sustained this man's claim to benefit is in itself significant. The Umpire in giving his decision disallowing the claim stated that the holding was too large not to provide suitable employment for him when not working for wages. The Minister will scarcely ask us to believe that a holding of four and a half Irish acres of arable land is sufficient to provide suitable employment for a man who has to maintain himself and his wife and five children and an invalid sister.

It would appear to me that the claimant is either occupied in an insurable occupation or he is not. I do not know if the Minister would class his occupation as part-time, subsidiary or as being casually employed for private purposes. I do not think he will suggest that. But if that is the case, if he comes under either of the latter headings, then he should not have to pay unemployment insurance contributions at all. If he is ordinarily employed in an insurable occupation, and unemployment contributions are extracted from him, I submit that when he becomes unemployed he is entitled to benefit. This man has been working at Barton's mill for the last thirty years. He has had to go before the Court of Referees in Dundalk on two occasions, a distance of between eighteen and twenty miles. He has never before applied for unemployment insurance benefit, and that in itself suggests that the case is a genuine one, seeing that he has a number of years' contributions to his credit. The rateable valuation of the entire holding is £10. That, of course, includes the valuation of the house and premises as well as the land. The rent is £5 5s. 0d., so that the Minister can form his own judgment. Anybody who knows anything about the valuation of land can form a judgment as to the extent and value of his holding.

I want to draw the attention of the Minister to the fact that the two tribunals before which this man appeared and presented his own case decided in his favour, and that the only tribunal that did not decide in his favour was the tribunal where he was not personally represented. The reply to my question stated that the decision is final. The decision, I submit, is not necessarily final. It is final if all the information was before the Umpire— all the available information at the time the question was decided. But if additional information is available, just as the insurance officer was able to get a second Court of Referees set up when he thought he had additional information, so the claimant, when he believes he has additional information that was not properly put before the Umpire, is entitled to reconsideration of his claim.

The fact that only 4½ acres of his holding are arable land is a new fact for the Umpire. I would like to point out, also, that this man has gone back to his usual employment, and is again paying unemployment contributions. If and when it comes to be definitely established that this man is not, owing to the extent of his holding, entitled to benefit, surely the Minister for Industry and Commerce will not continue to collect the unemployment contributions from him? Such a procedure would appear to me to be nothing short of legalised robbery, and certainly it is getting money under false pretences if a man cannot get paid when he is out of work.

I would draw the Minister's attention to a further fact in connection with this case. That is, that a person does not fail to satisfy the conditions attaching to the getting of unemployment benefit because he has declined employment if the conditions of employment are less favourable than the ordinary conditions of employment obtaining in his ordinary occupation. I certainly think the possible occupation on his five acres of land, with the responsibilities this man has to carry, would certainly not be employment as favourable as the man's ordinary occupation is. I submit he would be quite entitled to refuse. The suggestion has not been made by the Umpire or the insurance officer that this man was actually working on his land when he was supposed to be unemployed. The suggestion was made that suitable employment was available on his farm. That is the aspect of it I would like the Minister to take into special consideration. I submit, while he might have something to do to keep himself warm—cutting thistles, rushes or ragweeds around the house—he could not get suitable employment on the land in his district, and the real question at issue is: Does his farm provide suitable employment for this man when he is unemployed?

I think it is a very exceptional case, and I think a case has been made out in favour of re-opening this question and at least giving the man an opportunity of putting his case fully before another Umpire. If that cannot be done, I think the Minister should cease to take contributions from him.

The decision of the Umpire, as far as I can gather in this case put forward by Deputy Ward, is typical of decisions arrived at by the Umpire in regard to a number of other cases in Donegal, Dublin and other counties.

The Deputy cannot raise that on this question. He can only deal with this matter.

Deputy Ward has pointed out that this applicant has 113 stamps on his card, which entitle him to nineteen weeks' benefit, and that because he had nine acres of land, four and a half of which were arable, his benefit was refused. I think, taking into consideration the facts of the case, that that decision was fair. The question taken into consideration by the Umpire, which has not been taken into consideration, is this: While a man may hold four and a half acres of arable land he might be thrown out of his insurable employment at a time when it was not possible to cultivate the land.

Another point about the case is the fact that when benefit was in the first case refused to this man he then appealed to the Court of Referees, who allowed his claim. The insurance officer was able to get a second Court of Referees to adjudicate. Notwithstanding that, the second Court also allowed the man's claim, but it was turned down by the Umpire. It will be said, I suppose, by the Minister that the decision of the Umpire with regard to this particular case is binding, but nevertheless I point out to the Minister that while the applicant for unemployment benefit had an opportunity to appear before the Referee, at the same time he did not succeed in stating his case before the Umpire.

Deputy Ward raised another question. That is, if this man is not entitled to benefit he should not pay contributions. I think to give him exemption from paying contributions might be a dangerous precedent, inasmuch as people of that description would get employment where other people who would not be exempt would not. I think, at the same time, if the Umpire is not prepared to reverse his decision. the very least he can do is to refund the contributions in respect to those 113 stamps. Possibly the Minister would consider that.

I could not do that.

Has it been ruled by any court, and does the Minister know that a man engaged in insurable employment who is out of employment and goes back to his own little patch of land is employed in the sense understood in the Insurance Act? If a man had such employment, as when he goes and whitewashes his cottage while out of employment, is he also employed in the sense understood in the Insurance Act?

There has been no general ruling. Each case is considered on its own on the facts as they come up and is judged on them. If a man is in an insurable occupation in the autumn of the year, and has a farm of ten acres to go back to, the valuation of that being £10, I do not see any Umpire refusing to consider that man as having no alternative suitable employment at that time of the year. There is a list of decided cases by which the Umpire rules. The point that Deputy Cassidy raised was always taken into consideration by the Referee and Umpire. There is no general rule as to the particular rateable valuation, and the amount of land that rules a man out. One looks at the character of the land, the valuation and the amount of the land; all that is taken into consideration. In addition, the season of the year at which a man becomes unemployed when he falls out of an insurable occupation and goes to work on the land is considered, and also the applicant's previous industrial history, as to whether he is an industrialist and is suddenly thrown back on to the land. In the case of a man being in an industrial occupation for many years having land which he has let, and suddenly being thrown back after many years on the land, that would not be a case where the possession of land would count.

In this special case Deputy Ward has not succeeded in introducing a single new fact into this debate, unless the plea that the man was not dishonest in representing himself as having four acres when in fact he had nine or even ten. The Deputy tries to quibble on that by saying that he has only four and a half acres of arable land. He is asked to state definite things in a certain document which forms the basis of his statement and is in the nature of an affidavit. He is asked to reply to such questions as: "Have you a holding?' "Do you let any land, and, if so, state the size of your holding?" It is certainly not treating the court frankly for a man to put down four acres when in fact he owns ten. As a matter of fact it would occur to the mind of any court adjudicating that the applicant represented himself as being in possession of less land than he had and that if he gave the full amount it would be a case against him.

Did not the first court, after this fact was elicited, decide in his favour?

That may be.

It is not a question of may be; it is an actual fact.

It may be an actual fact, but it does not interfere with my argument that it must prejudice the mind of the court to find a man behaving in that way.

Yet they decided in his favour.

They did not in the first instance. It was only when the insurance officer got the facts and presented them before the second court. The Deputy was talking about the first court, but he was wrong. The second court decided in his favour, and Deputy Ward and Deputy Cassidy seem to think that it was wrong for an insurance officer set up to protect the fund and backed by legislation to appeal in the case. The fact that the Umpire finally decided against the man was the greatest proof that the insurance officer was acting in accordance with his duty. If it is going to be alleged that a man with a farm of 10 acres can so divide it between arable and waste land, I must say I never yet saw a case before an insurance officer where land was described as being without valuation. If a man has 10 acres partly arable and the valuation of that land is £10, I wonder what would the Deputy think was the amount of the valuation set aside for the waste land.

And house?

And house. Would £2 be too much? Can it be put down that the valuation of the arable land is less than £1 an acre? If it is less, what is the description of the land? On arable land the calculation would be about £2 an acre, which makes it out to be champion land. If it is to be said that a man in the autumn of the year cannot find alternative employment on that holding, I must say that there are a considerable number of farmers not as well off as that man. There have been no new facts elicited on which the case could go back to the Umpire, but if there were any new facts produced it could go back. Instead of putting down a question and complaining when the law is stated that the answer is unsatisfactory there is a complete and easy approach to the Umpire when new facts are brought forward, and there has been no hesitation on the part of the Department in any case to bring it again before the Umpire when new facts are alleged to be discovered. These land cases are things in themselves. It has been suggested generally that this man should be exempted from having his contribution exacted from him when he goes back to an insurable occupation. I noticed that Deputy Cassidy was quick to repudiate that. I think that that would be a very unsound suggestion to follow. It would mean that for the future when a county council have road work to dispose of they would in every case engage men who have a bit of land and who were exempt from paying contributions, because it would be an easier burden on the council to pay wages and not to have to pay insurance contributions.

I made a detailed analysis of these cases a year ago to this House, and took all the cases as they came within the yearly period up to a particular date in 1927, and I showed that 75 per cent. of landowners' cases are decided in favour of the applicant. We only hear about the 25 per cent. which are decided against them. If we are going to move to exempt people who are in insurable occupation at certain times and who afterwards have to go back to their patch of land, remember the harm that will result. You will penalise 75 per cent. of the cases which come up, and they will practically be wiped out in order to help the 25 per cent. who, after a certain series of courts have adjudicated on them, are declared not to be entitled to the particular benefit. This case went in accordance with the law. The claimant made an application and the insurance officer turned it down. The claimant appealed and the Court of Referees granted the benefit, but the insurance officer, in the discharge of his duty, said that he was not satisfied and was going to the Umpire when the discovery was made that the claimant's holding was not properly described. Instead of the case going to the Umpire it was sent back to the Referees and the insurance officer was within his rights in opposing. The Court again decided in favour of the claimant, and the insurance officer, again within his right, appealed to the Umpire, who gave his decision against the claimant. The Umpire is the judge set up for the purposes of the Act, and is in almost an equivalent position to a judge of the High Court. I am not going to question his decision on the facts. There is a way of re-opening the matter if new facts are in anybody's possession. If the whole case is as made by Deputy Ward, I think he would be well advised not to pursue the matter further. If the facts are as he stated it does not seem to me that there is any new fact to go before the Umpire.

Would it not be considered a new fact that instead of having nine acres of arable land he has, in actual fact, less than five acres? Is that not a new fact?

It is not a new fact.

How has it come before the Umpire?

It was presented to the Umpire.

By whom?

By the insurance officer.

Will the claimant not be given an opportunity of going before the Umpire?

If he wanted to go before the Umpire he could have done so. If the Deputy is relying on the first wrong and inaccurate statement about the four-acre holding, which was afterwards extended to nine acres, and if that is now to be divided up into a division between arable and non-arable land, I may say that there was a division of that land already before the Umpire.

But only presented by the insurance officer.

The claimant could have gone before the Umpire, and he can go still. All that could have been done without any hubbub and in a straightforward way.

He was kept three months without unemployment benefit.

And he will be kept altogether without unemployment benefit until the facts are stated.

Until they are exposed.

I do not believe that there is a single new fact presented by the Deputy that was not before the Umpire.

Is there any power in the Department to return the contributions?

If we did we would be acting illegally. We have got to carry out the Act, and we are bound to collect the contributions. There is a way in which men may claim exemption. That is a properly-drafted piece of legislation, and people who at times get into insurable occupations, but who are mainly employed in non-insurable occupations, if they can prove that, they can get exempted, but the case which the Deputy makes blocks that plea. The Deputy's case is that this man was constantly engaged in an insurable occupation, and only occasionally went back to the land. The Deputy has done a disservice and made a clear case against this man getting benefit.

I did not say that he went back to the land, but the Umpire held that he had valuable occupation on the land.

That does not get away from the fact. He must claim that he was definitely engaged in insurable occupation.

You are going to have it both ways.

I do not have anything both ways. A fund has been built up and based on actuarial investigation, and if the good lives are ruled out—if that insurance fund has to depend on bad lives—then the insurance contributions from the State, the employer and the employee will have to be increased. You cannot build up a sound insurance scheme on bad lives alone.

The Dáil adjourned at 11 p.m. until Friday, 23rd November, at 10.30 a.m.

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