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Dáil Éireann debate -
Tuesday, 22 Jun 1976

Vol. 291 No. 10

Social Welfare (No.2) Bill, 1976: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

My contribution on the last occasion was very short having regard to the fact that I came in rather late in the evening. Consequently, it would be no harm to recall the initial observations of the Opposition in relation to this Bill on the basis that, if nothing else, repetition is the mother of study.

My general views on the Parliamentary Secretary's Second Reading speech were that the speech was excellent, that the documentation was easy to follow because of cross headings and so on; but, having said that, one must come to the Bill itself. The piece of legislation before us is extremely complex, lengthy and technical in content. The Parliamentary Secretary has said that one of the main planks on his platform as Parliamentary Secretary to the Minister for Social Welfare is to introduce comprehensibility into any legislation in this area which comes before the House. However this Bill, to say the least, is no indication of his intention to do away with the complexity and confusion of certain parliamentary instruments which come before us from time to time. Although the Bill contains only 14 sections, it is of a very technical nature. It is a Bill aimed at bringing about dramatic increases in penalties for abuses of the social welfare code. To that extent it might be regarded as a draconian piece of legislation were it not for the fact that it is directed at a very small group of people who, for reasons best known to themselves, think that social welfare is fair game. In those circumstances it would be our hope that the Bill would have the effect of deterring this minority. If it achieves even that much, it will be worthwhile.

However, we must question the need for the Bill in the light of abuses in the past and of the penalties that have been imposed for such abuses. I am talking about the recent past. When we were given notice of the Government's intention to introduce this Bill I tabled a series of questions to the Minister for Social Welfare in relation to abuses generally of the social welfare code. In my opening remarks last week I quoted these questions fully so I shall not burden the House with a repetition of them today. In so far as the Minister's replies were concerned it was good to learn that, for instance, few if any crimes had been committed in regard to children's allowances. The questions and the replies to them are reported at columns 13 to 16 of the Official Report for May 25, 1976. The replies showed that in respect of children's allowances for the year 1973 there was no prosecution, and that the information sought under the other headings—the number of dismissals, number of persons fined and amounts of fines, number of persons sentenced to terms of imprisonment, the amounts sought to be recovered and the amounts recovered—did not arise. For 1974 we were told that there was one prosecution under the heading of children's allowances and that there was no prosecution under that heading in 1975. It is good to note that people do not abuse their entitlement under the social welfare code in so far as children's allowances are concerned. Consequently one wonders why it is considered necessary to increase fines and the length of prison sentences for abuses under this heading. Is it not clear that there is no need for such action?

In regard to the old age non-contributory pension the replies to the questions indicated that the number of prosecutions in 1973 was one, that, by definition, there was one person fined and that the amount of the fine was £2. Again, in 1974, there was one person fined under this heading, the fine in that case being £5. There was no prosecution in 1975 under this heading. We were glad to learn that in this sphere, too, people did not abuse their entitlement.

When we come to the question of the payment of employment contributions we find that the situation is very serious and grave. It may be well to inform those people who have engaged in these very serious offences that this Bill provides for dramatic increases in fines and in terms of imprisonment for abuses of this system.

We come to the heading of the number of persons sentenced to terms of imprisonment and length of term arising out of the reply I received to my parliamentary question on 25th May. The number of prosecutions for failure to pay employment contributions in the year 1973 was 324; the number of dismissals three; the number of persons fined an amount and the amount of fine, 274 persons fined in 1973 and the total of those fines was £1,515.50; the number of persons sentenced to terms of imprisonment and length of terms, nil.

Again, we must query the need to increase prison terms on foot of the fact that 324 people have been prosecuted in 1973 and the number of persons sentenced to terms of imprisonment in that year is nil. One wonders at the reason for the dramatic increase in the terms of imprisonment imposed by this Bill in the light of the fact that, thank God, no persons have been sentenced to prison for abuses of the payment of employment contributions, and in this regard the Parliamentary Secretary might inform the House why the terms of imprisonment have been increased so dramatically despite the fact that again the courts obviously saw there were mitigating circumstances, very good reasons possibly why the people who abuse the social welfare code were not sent to prison. Why under those circumstances does the Parliamentary Secretary wish to increase the terms of imprisonment so dramatically?

In 1974 under the same heading of the failure to pay employment contributions we had 349 prosecutions, 13 dismissals and 306 fines totalling £1,980.50. Again, there were no terms of imprisonment under that heading. In 1975 the total prosecutions were 192; number of dismissals nil; 177 fines totalling £1,231.

It appears to us on this side of the House that we are dealing with legislation which fundamentally does require fairly stiff increases in fines, but whether in fact we should be dealing with a situation which is increasing terms of imprisonment which are non-existent under existing legislation in the past three years is a different matter, and whether we are being given a dose of Coalition law and order sunburstry, is a question which must be raised with some sincerity and is raised.

On the question of abuses relating to another area, disability benefit, in the year 1973 the number of prosecutions was seven, in 1974 the number of prosecutions was three and in 1975 the number of prosecutions four. Again, we must pay tribute to those people who are in receipt of this social welfare entitlement. These people are quite clearly not abusing their entitlement to any great degree but, again, we must query the need for increases in the fines and sentences of imprisonment, having regard to the fact that it appears that existing legislation is good enough.

Regarding unemployment benefit, I agree here with the Parliamentary Secretary that there is so much off the top of the head talk about abuses in the pay-related benefit, unemployment assistance and unemployment benefit schemes. People suggest that these are systems that are being abused up and down the country. I wish these people would put their facts where their mouth is and give us some examples of exactly what they are speaking about. Here we have a perfect example of the Department of Social Welfare doing their work in regard to abuses which come to their attention either by way of information they receive or by their own detective work and the abuses in the social welfare code are not all that bad. Certainly the last years indicate that. This is not to suggest for a moment that all the abuses are being brought to the attention of the Department of Social Welfare, and indeed the Department of Social Welfare themselves are actually detecting a number of abuses which no doubt are going on. Nevertheless, we can speak only of the record and the record is here for those people who would like to examine it. The abuses under the social welfare code are not all that bad having regard to the statistics available to us, particularly in relation to the following entitlements.

Unemployment benefit: year 1973, number of people prosecuted 67, number of dismissals, six, and there were 48 fines totalling £363 ranging from fines of £1 to £30. The number of persons sentenced to terms of imprisonment and the length of terms were two in that year of 1973. One was sentenced to prison for three months which in fact was suspended and one was sentenced to a term of two months imprisonment again which was suspended. So here we have a situation where out of the vast number of unemployed beneficiaries only 67—and I use the word "only" though of course the figure should be zero—in fact only 67 out of the vast army of unemployed under the heading of unemployment benefit abused the system. Only 67 people were detected in the abuse of the system.

In 1974 only 31 persons were prosecuted, again detected; 30 persons were fined and the total amount of the fines for that year was £405.50 ranging from fines of 50p to £60. There were no terms of imprisonment in that year.

Under the heading of unemployment benefit for the year 1975 there were only ten persons prosecuted and the number of dismissals in that year was two. Six persons were fined a total of £49 ranging from fines of £3 to £15. There were two persons sentenced to imprisonment. One of these was sentenced to 14 days which was suspended. The other person was sentenced to one month, again which was suspended.

We come to the heading of unemployment assistance and here the lie is finally nailed as far as the suggestion that there is that much abuse of the social welfare code is concerned. Let us not delude ourselves. There are abuses of the social welfare code but those persons who are so histrionic about these abuses might do well to research their facts before they make those statements and the facts and the statistics are here in front of us. These are the official statistics. These are the known statistics. This is what we go by. This is what we are guided by. Under the heading "Unemployment assistance", in the year 1973 the number of prosecutions was 11. There was one dismissal. Seven persons were fined. The fines totalled £87 ranging from £2 to £24. No term of imprisonment was given. In 1974, the number of prosecutions was nine. The number of dismissals was zero. Four persons were fined and the total of the fines was £66, ranging from £10 to £21. In 1975, the number of prosecutions amounted to the large total of two. There was no dismissal. Apparently there were no fines and no terms of imprisonment.

It behoves us all to be realistic about these hysterical outbursts against the suggestion that there are large-scale abuses of the social welfare code. My own view of these hysterical and histrionic outbursts is that they bring the code into disrepute and do harm to the confidence of those persons who are in legitimate receipt of their social welfare entitlements, particularly unemployment benefit and assistance. It is well that message should go from this House about those people who make statements condemning the social welfare code and its operability.

This code was introduced by successive Fianna Fáil Governments over the years and we were particularly proud of it when we were in Government. Undeniably that code is being developed, however piecemeal. We have been promised consolidation Bills and other matters which will make the social welfare code more comprehensible and more understandable to the man in the street. We have a pamphlet, a summary of social assistance and social insurance services, which is quite understandable. It outlines in a nutshell fashion and quite succinctly a person's entitlements under social welfare code. For that the Department deserve credit. This type of booklet has been in existence for a number of years. This is not a new idea. Naturally with the process of evolution the booklet becomes more understandable by virtue of the experience of the officials.

The Bill before us does not reflect the thinking of those who produced this pamphlet I have been speaking about. When he is replying to this debate, the Parliamentary Secretary might indicate to us the methods whereby the officials of the Department go about detecting abuses in the social welfare code. Has the Parliamentary Secretary any plans or any new ideas to increase the efficiency of the detection of abuses? This would concern us all. Any assistance he may want from the Opposition in this respect will be willingly forthcoming.

To come back to the question of understanding legislation, Bills are not the preserve of Dáil Éireann, or individual Deputies or groups of Deputies. Nor are they the preserve of the Government. As I understood it, the Government gave an undertaking that they would codify social welfare legislation. No doubt this is an ongoing situation. It will be a difficult and lengthy process without any shadow of doubt. This is a 14-section Bill. It is a highly technical, highly complex piece of legislation. It will add to the burden of the people who will be charged with the codification of social welfare legislation. We have already adverted to the fact that there are in excess of 350 separate pieces of social welfare legislation in existence.

Section 8 of this Bill has 161 lines. That is the record. Section 4 has 140 lines. This legislation touches the everyday life of individuals. The Parliamentary Secretary told us the number of people with social welfare entitlement of one type or another including children's allowances. The figure must be in excess of a million. The Parliamentary Secretary said:

There are, at present, approximately 88,000 recorded employers and about 500,000 claimants of the wide range of weekly payments available under either the insurance or assistance schemes together with——

I would have imagined that should be "in addition to".

——some 405,000 families in receipt of children's allowances.

My figure of a million people touched by the social welfare code in one way or another is not that far out. In fact, it might be an underestimate if the real truth were told.

We have an obligation to introduce understandable legislation, non-complex legislation. The legislation now before us flies in the face of that proposition. It is a most difficult piece of legislation. As I have already stated, legislation must be available to all. Lawyers are entitled to a living but if we become involved in litigation this involves added expense. The more legislation we can keep out of the hands of lawyers, as it were, the better from the point of view of expense, from the point of view of dealing with problems quickly, and so on.

I would imagine the most high-powered lawyer would find it very difficult, on a quick perusal of this legislation, to make sense out of it. He would have to burn the midnight oil for quite a number of evenings to arrive at any conclusions that might be demanded of him relative to whatever points might be brought to his attention. Therefore, the onus is on Dáil Éireann to introduce legislation which does not contain sections of 161 lines and 140 lines. Legislation coming before this House is open to all and must be understood by all. If it does not reach that minimum standard, then it might be described as not necessarily bad legislation but bad in a sense that it is difficult to understand. However, I do not want to labour that point. I would hope to make a constructive contribution to the debate on this Bill. It must be a short contribution in view of the need to bring forward much of the legislation which remains to be dealt with having regard to the legislative logjam which faces us.

The Bill, as I have already stated, appears to be increasing fines and prison sentences, under the heading of various social welfare entitlements, for non-existent abuses. For that reason alone the Bill reeks of illiberality. It is unfortunate that the Parliamentary Secretary who is a liberal person and has in the past, and more particularly when he was in Opposition expressed, along with his colleagues, the most dewy-eyed liberal sentiments, should introduce huge penalties, whether by way of fine or imprisonment, for abuses which do not exist or for actions which are not abuses to any great degree, having regard to parliamentary replies received to my questions in the Official Report of 25th May last.

This illiberal tendency on the part of the Government I described on the last occasion as an effort—and an effort that appears in some way to be succeeding—to clothe this Government with the law and order mantle, to engage in, as I have already stated, law and order sunburstry. It is all very well to be introducing penalties and to be giving the appearance of doing something, but that, in my respectful submission, recks of hypocrisy, because we have quite clearly shown during the contributions here to date on the Parliamentary Secretary's complex and highly technical Bill that, according to his records and according to the records produced by him for the three years of the Government's term of office, the abuses are not as large as was imagined.

One wonders why, in these circumstances, existing legislation is not adequate. No doubt the Parliamentary Secretary will reply—he is quite entitled to say what he will—that if these fines and draconian prison sentences frighten off the recidivist abuser, that is the person who continues to abuse the social welfare code despite the existing penalties and fines, then that is all to the good.

I would accept that the Parliamentary Secretary's processes in that direction are correct but again it would appear that there does not exist such a large problem in relation to social welfare abuses as was thought. No doubt the Parliamentary Secretary will disabuse my mind of that, but my proposition is taken from the information received from the Parliamentary Secretary in answer to my six questions in the Official Report of 25th May last. It is good to see that the social welfare system, according to the figures, is not being abused as much as we thought it had been abused. Nevertheless, it is fair to say that there may be hidden abuses going on daily, and it is to come to grips with this very small minority that I would ask the Parliamentary Secretary to get his detection team out and about, because those people who consider the social welfare code fair game are anti-social citizens and what they are effectively doing is making less money available to those people who would be most in need. We all hope that social welfare benefits would increase to cope with inflation and with the reduction in money values. I think our philosophy is that the persons most in need should obtain most in terms of finance. Those people who consider the social welfare system a sort of gaming casino where they can have a bet that they will not be caught are the people who are doing damage to those we would wish to help most and who are taking money out of the pockets of the old age pensioners, contributory or otherwise, or of the person who is on unemployment assistance or the person who, to use the old expression, is in need of home assistance.

These anti-social creatures are engaging in an attack on the social welfare code, a code which is designed to help those most in need. The message cannot be sent out often enough from this House, that the social welfare abusers are a sorry lot who should be seen for what they are. Their anti-social behaviour is a credit to no one, least of all themselves. We re-echo what the Parliamentary Secretary said, that there is such a trend in this society. I am sure the Parliamentary Secretary will agree with me in reminding this small minority who practice this that the social welfare code is not fair game and must not be seen as fair game. The collection of unemployment assistance and not accepting work when it becomes available is an abominable and soul destroying abuse. I should like to make the point again that there is no open season on the social welfare code.

The people who have to pay for social welfare, apart from the moneys borrowed from external sources, are in the main ordinary taxpayers. It is well to remind these social welfare abusers, the anti-social citizens among us, that they might as well be putting their hands not alone into the pockets of the taxpayer who pays for social welfare but into the pockets of those most in need who could do with more social welfare assistance. They are lessening the entitlement of those people in need. The amount given in relation to social welfare payments weekly is incredible, £2 million per week, and I have no doubt that this figure will increase with inflation over the next two or three years. It will increase with the lack of job climate we are harassed by on a daily basis.

I should now like to advert to a section which may be dealt with in amendments tabled by the Parliamentary Secretary which have just come to hand, section 4. This is the tragedy; the unlicensed moneylender in society, the peculiar species who holds himself up as some sort of a do-gooder. We all know that there existed—I have no up to date evidence of its continuance—a practice where-by the children's allowance book changed hands. Section 4 is introduced to ensure that the people engaging in this practice will be stopped. Obviously, it was introduced to attempt to bring about a closure in relation to any person who buys, sells or offers for sale, takes or gives in exchange, or pawns or takes in pawn any insurance card or any used insurance stamp. The same applies in relation to children's allowance books. It appears unfair that both parties, the holder of the children's allowance book and the person who takes the book on the foot of some outstanding debt or on foot of some cash transaction, will be liable to the same penalties. After all, one is by nature the oppressor and the other is by definition the oppressed. It is a tragedy that this sort of situation exists in our society. Clearly, it must exist if the Parliamentary Secretary is introducing a section of this nature. It is proper that the penalties in this respect have been increased.

In the context of the example given it is a tragedy that the oppressed should have the same penalties hung around his or her neck as the oppressor. There should have been a clear distinction made in relation to that point. There are oppressors in our society, a small minority, a group of Christians who no doubt attend their services in a Christian fashion but at the same time abuse their fellow citizens with this sort of behaviour. I cannot think of anything more despicable than an unfortunate woman having to exchange her children's allowance book for the 30 pieces of silver and that is what it amounts to. It is an appalling prospect and it is an appalling commentary on a society that such a situation may exist.

I understand that the Bill must go through all its Stages and in this regard I should like to state that I was under the impression we would have an opportunity to place amendments in relation to it. I should now like to deal with a section which is of great concern to this side of the House, section 11. The section deals with the presumption regarding truth of information in applications for certain benefit, allowance, pension or assistance. Again, we must query this. I have no doubt the Parliamentary Secretary will have an adequate answer but is the onus of proof being shifted under this section from the accused to the accuser? We understand the situation to be that if a person is reported, anonymously or otherwise, for abusing the social welfare code but more particularly where a person claims unemployment assistance or benefit while working, entitlement is cut off pending investigation. After that it is a matter for the person accused to prove his innocence on the basis of facts given to the Department. That is a fairly reasonable proposition but on closer scrutiny one finds that in a number of cases the report is made anonymously by somebody who has not the guts to make the allegation publicly against his or her neighbour. Now it appears that this is being given some form of legislative effect.

In this society our legal code is accusatorial. It now appears that the Government are introducing an inquisitorial system. The Parliamentary Secretary, on behalf of the Government, seem to be copper-fastening in section 11 the inquisitorial form of accusation, which to us is not proper. I would ask the Parliamentary Secretary to clear the legal air in this respect. The shifting of the onus of proof from the accuser to the accused is a very serious departure. We may be reading more into this than we should but if we are, naturally we will accept that position. Subsection 11 (2) reads:

Where in a prosecution for an offence under any of the Acts to which this applies...

The Acts to which this section applies are substantial in number. They are the Old Age Pensions Acts, 1908 to 1976, the Unemployment Assistance Acts, 1933 to 1976, the Widows' and Orphans' Pensions Acts, 1935 to 1976, the Insurance (Intermittent Unemployment) Acts, 1942 to 1976, the Social Welfare (Children's Allowances) Acts, 1944 to 1975, and the Social Welfare Acts, 1952 to 1976. This is not only a substantial number of Acts but it could be described as a plethora of legislation so far as this section is concerned. Therefore, it becomes even more serious in the context of the reading of subsection 11 (1).

If the Deputy is looking for clarification on this point——

There is no departure as far as law is concerned. There are several precedents existing in law. What it means is that, if a person makes a written statement in connection with a claim, we assume that he knew all the facts at the time.

I accept that. Nevertheless the Parliamentary Secretary is making the point that it is confined to that specific problem, but the section itself does not relate specifically to the examples given. If it did, and if a person made a statement, by any normal standards and without having regard to the inquisitorial and accusatorial form of legal system, he would, by definition, have to stand over the statement. Subsection 11 (2) reads:

Where in a prosecution for an offence under any of the Acts to which this section applies, or under regulations made under or applying the provisions of any of those Acts, it is shown to the satisfaction of the court——

(a) that an application has been made by a person (in this section referred to as the defendant) for benefit, allowance, pension or assistance under any of the Acts to which this section applies, and

(b) that as a result of that application benefit, allowance, pension or assistance under any of the Acts to which this section applies has been paid to any person (whether or not such benefit, allowance, pension or assistance was that applied for and whether or not it was paid to the defendant),

the defendant shall be presumed to have given any information contained in the application (or to have caused it to be given on his behalf) and, where such information is false, with full knowledge of such falsity and with intent that it should deceive; but this presumption may be rebutted.

Is the Deputy implying that it is only an offence against the law if one is successful in one's attempt to break the law?

Not at all.

That is what the Deputy appears to be saying.

The Parliamentary Secretary is being a bit unfair in that regard.

The Deputy appears to be implying that, if one is unsuccessful in one's attempt to break the law, one should be exonerated and the penalty should only come into operation if one is successful. That is the logic of the argument as I see it.

That is the conclusion the Parliamentary Secretary has come to and that is his logic operating on my argument. That type of corollary would be totally unacceptable to me——

If one applies logic to the Deputy's statement, it is the only conclusion one can reach.

That is a matter for the Parliamentary Secretary's logic and there is nothing I can do to shift him from his argument. If he would let me continue along these lines, he will have an adequate opportunity to pursue his line of logic later.

The Parliamentary Secretary made one good point—there are precedents for the shifting of the onus of proof in a number of related areas. While these precedents exist, they are nevertheless anathema to the legal structure under which we operate. The Parliamentary Secretary, no matter what kind of logic he takes or what line of argument he pursues, will agree that a person is presumed innocent until he is proved guilty. It appears to us on this side of the House that it is proper in all circumstances that the onus of proof should not be shifted from the accuser to the accused. It is a matter for the accuser to make his case before a court. When that onus is shifted, we are getting on to very dangerous grounds.

I will now get back to the Parliamentary Secretary's line of logic. We are dealing here with complex and highly technical legislation and a highly technical social welfare code. If criticism is to be meted out in equal portions, successive Governments must take whatever criticism is going. If we are talking about logic in relation to legislation, this Bill does little. If the argument is one of logic, comprehensibility, understanding and reason, then the Parliamentary Secretary must see that the enforcement of this legislation will give rise to many problems, having regard to the rather confused fashion in which it was presented to the House and the fact that there are 161 lines in one section and over 140 in another. If we are talking about logic, we should be very careful to use the word correctly. The Parliamentary Secretary gave us an example in relation to the operation of section 11 and the shifting of the onus of proof. He also said that if a person could get away with an abuse by convincing the court that what he had done was not wrong we would welcome that. Nothing could be further from the truth.

Our argument in relation to this Bill has been that the social welfare code is fair game for nobody, it is open to nobody to see it in that light and that anybody who engages in abuses of the social welfare code is engaging in anti-social behaviour. That might give the lie to the suggestion by the Parliamentary Secretary in relation to our proposition that the onus of proof is shifted in this fashion. We understand this is the first time that a section of this nature has appeared in the social welfare code. Again, that is subject to correction. If we were to search through all the social welfare legislation to prove or disprove the suggestion that such a section does not exist, we should be here until the end of the 26th Dáil. This is an extremely complex area and one would need a large staff to prove or disprove some of the contentions that may or may not be made from time to time in this House. The Parliamentary Secretary is charged with the proper running of the Department and no doubt he will give us the information we seek in this respect.

Having looked at section 44 of the 1952 Act, it appears that a number of words have been omitted in relation to section 2, which reads: "Section 44 of the Act of 1952 which relates to appeals and references to appeals officers under that Act, is hereby amended by the substitution of the following subsection for subsection (9)." Then subsection (9) is substituted. Did the Parliamentary Secretary leave out the words "who refuses or wilfully neglects ... wilfully fails ..."? These are very important words and should not be omitted in this legislation as, indeed, they are not omitted in the 1952 Act. In section 11, which appears to shift the onus of proof from the accused to the accuser, the word "wilful" should be inserted because the law is all about intention.

The various sections are dealt with at considerable length but the Parliamentary Secretary might have considered the second half of section 4, which is a very lengthy section. Does disqualification run from the time the proceedings are instituted or does it run until the person is found guilty of the offence? Again, it is in six-months disqualification. If a person finds that he has no income whatsoever as a result of disqualification, what happens in those circumstances? Can the Parliamentary Secretary give us an assurance that such a person will not be in need?

Section 7 deals with winding-up and bankruptcy under the Preferential Payments in Bankruptcy (Ireland) Act, 1889. My reading of this section is that social welfare debts get first call on assets. If that is the correct reading I believe it is the right reading. If the social welfare code is under attack, and if a company finds itself in a bankruptcy position, it appears to be proper that in those circumstances first call on the assets should be made by way of payment to the Department of Social Welfare of any outstanding debts in relation to social welfare contributions. I hope that is the proper reading of section 7.

Section 8, subsection (4) (b) reads: "Any sum paid by an employer under this subsection shall be treated as a payment in satisfaction of the unpaid weekly contributions, and the insured person's portion of these weekly contributions shall not be recoverable by the employer from the insured person." The situation appears to be that the amount not paid by the insured is the employee's share which may not have been collected. In those circumstances the employer has to pay his own share as well as the insured's share. Does the Parliamentary Secretary accept that my reading of that subsection means that the employer would be liable for the full amount?

May I suggest that matters of detail in the Bill be left to Committee Stage?

I accept that. It is my intention to conclude and to raise these points in a spirit of constructive criticism and to refer particularly to the question of the exchange of children's allowances and so on, or any other negotiable instrument under the social welfare code. Does the Parliamentary Secretary take the view that the oppressor rather than the oppressed should be the person to suffer most. It appears inequitable that the penalties for one should be equal to the penalties for the other.

During the course of his apparent revolutionising of the social welfare code can the Parliamentary Secretary tell us when he intends introducing this whole question of the codification of the social welfare code? Can the Parliamentary Secretary give us times and dates? There is no question but that whatever Government introduces such a scheme in relation to social welfare will receive the undying thanks of the population.

I have no intention of delaying the Parliamentary Secretary. I understand he is anxious to get all Stages of the Bill. A time has come to have a look at the whole structure of social welfare. I have no doubt that the Parliamentary Secretary in his three or four years of office must have quite a lot of knowledge at his disposal so that he could now sit down with officials who have many years of experience in the Department of Social Welfare, and draft something so that, perhaps an all-party committee may be set up in the House under the chairmanship of the Parliamentary Secretary. There is a need for this because a year has not passed that we have not had a Minister coming into the House making amendments, adjustments and things of that kind. Here is an opportunity to look at the whole structure and bring in a more comprehensive social welfare policy.

I believe that fines will not prevent abuses and I would ask the Parliamentary Secretary what is wrong with existing legislation. We on this side of the House should have this information. If it has failed why has it failed? I do not think we have sufficient proof or that the Parliamentary Secretary has sufficient proof to substantiate the failure of existing legislation. Deputy Andrews quoted a number of prosecutions. If there is abuse on such a large scale, one would expect a greater number of prosecutions. I would like to know from the Parliamentary Secretary why he is introducing this legislation and if he would give us some reasonable explanation as to why existing legislation has failed. We do not know to what extent abuses are going on but the people who indulge in this kind of abuse where social welfare is concerned should realise that they are inflicting hardship on those who are fortunate enough at the moment to be in employment. These people have to pay increased social welfare contributions and increased income tax and people should realise this. People should also realise that sooner or later those at present employed will not be able to carry this burden. Abuses where social welfare are concerned have a bad effect on the potentials of employment. I am sure that the Parliamentary Secretary is aware of what I am talking about. Some of the abuses are to my mind depriving many young people of employment in certain industries in this country. The quicker people realise this the better.

People will say there is little use of complaining about abuses when we have not sufficient personnel in the Department of Social Welfare to investigate abuses. This is true and that it why I say that bringing in legislation and talking about fines will not prevent abuses. The Parliamentary Secretary should give very serious consideration to recruiting more inspectors or investigators so that when a complaint is made the Department will be in a position to make a thorough investigation. I have noticed in recent times the abuse where an employer fails to stamp the cards of an employee. Just this week I have something in the region of half a dozen unfortunate people who have applied for social welfare and are now informed that their cards for the previous year are not in the Department. This is to my mind one of the greatest abuses because you have an unfortunate man working and not knowing how he stands when he is compelled to make a claim for social welfare benefits. The extraordinary thing about it is that the applicant may have to wait for months while the Department officials are investigating his case or may even have to wait until such time as the Department institutes proceedings against the employer. Here, again, there is not sufficient personnel to go around and examine the books of employers where employees are concerned. It is a terrible shame that where a person produces evidence of his employment for a year to two years that he must still wait until such time as the Department have sufficient information that this employee was in employment over a period. I would ask the Parliamentary Secretary to bring this matter to the notice of the Minister.

It is appalling to have people awaiting a decision from the Department because an employer fails to stamp a card. Too many young people are being abused in this respect: they are brought into employment for a short period. It is like begging: they are told: "We will take you in and you can do odd jobs but we will not stamp your card". This is openly going on. "You can have a job if you are willing to take it but we will not pay any contribution towards social welfare". This is true. I agree with Deputy Andrews that there is urgency now about looking at the whole structure because this abuse is going on for a long time and little or nothing was done to prevent it. As a result, the whole community suffers, those employed and those mainly dependent on social welfare, the old, the permanently sick, the physically handicapped. They are crying out for increased social benefits, but because of abuses these people are deprived of any increase to cushion them against the ever-increasing cost of living. I do not know the extent of this abuse but I hope those guilty of it realise what they are doing to the less fortunate in the community, those really entitled to social welfare benefit and, above all, to our economy. People look to the Government: they are elected to run the country. They must show leadership and take responsibility to ensure that those who abuse the social welfare code are brought to justice.

I agree with Deputy Andrews about children's allowance books being held by moneylenders. This is a form of blackmail. Because a person runs into a lean period he must produce his children's allowance book as a guarantee against a very small amount of money given by way of loan. At present the fines are not sufficient to prevent such abuse. Not only are people asked to produce children's allowance books but documents regarding any other benefit they may be receiving from the Department. This is an appalling state of affairs but it is happening all over. During our period of office—the Parliamentary Secretary may also have some in his hands— we were able to lay hands on some such people and prevent the continuation of this abuse.

We welcome the Parliamentary Secretary's stand in trying to prevent further harm being done to the social welfare code. We support this effort 100 per cent but at the same time there is urgent need now to examine the whole structure from the experience of the Parliamentary Secretary and his officials and we are at the stage when some proposals in this respect should be introduced in the House. I sincerely hope that those engaging in those abuses realise the danger they are in.

I welcome the fact that Deputy Andrews as spokesman for his party supported the introduction of this Bill. His contribution in many respects has been a valuable and a very balanced one in that he went to considerable pains to point out that he agreed with my assessment of the limited amount of abuse that is occurring against the social welfare code. By expressing his agreement on that he has done justice to a great many people who are dependent on social welfare payments and who have been indiscriminately slandered by people who, under the rules of this House I can only describe as the media describes them, as leading industrialists. I have spoken about this before. On a number of occasions they have made wild attacks on people who, in my opinion, are victims of our society and who find themselves out of employment and dependent on social welfare benefit which is theirs by right.

The amount of coverage these so-called leading industrialists have managed to acquire on the media has built up a climate of opinion here which in my estimation is dangerous and dangerously anti-social welfare. We often hear of the tremendous amount of money paid out annually by the State in social welfare payments of various kinds. Unfortunately the most vocal of the critics of social welfare, particularly in relation to pay-related benefit, are those who have taken the least trouble to find out how precisely that scheme operates. I have seen some deplorable distortions of the operation of that system by newspaper columnists, usually those who engage in gossip columns, not political commentators, and who make sweeping statements implying to the country at large that everybody drawing unemployment benefit or assistance is spending that money solely on drink. That is the impression such people have managed to convey through their access to the media. It is only right to say that they have done a grave injustice and disservice to many less fortunate people in our society.

Deputy Andrews quoted from a parliamentary question he had tabled to ascertain the number of prosecutions taken under the social welfare code over a number of years; I think 1973, 1974 and 1975 were the years. It was revealed that in some cases, as he was at pains to point out, no prosecutions or convictions had taken place. The ones on which he concentrated that fell into that category were the children's allowance and old age pensions. For both of those benefits the qualifying facts are very easily ascertained. If one is going to draw children's allowances, one produces a birth certificate in respect of the child or children involved. The Department know precisely the age of the child or children and what will be the duration of their eligibility for benefit. It is very difficult to defraud as far as children's allowances are concerned. Naturally, there would be less prosecutions under that heading. The same applies to old age pensions. There is a qualifying age in respect of which a birth certificate is also necessary for substantiation. In the case of contributory old age pensions, there is a stamp record at the disposal of the Department— indeed the record is kept within the Department—so that it is easy to determine whether or not a person qualifies under the law. Therefore it is very difficult to defraud under that heading of the social welfare code. I do not think they were very good examples. Deputy Andrews continued and came to the same conclusion as I did: that the number of prosecutions that take place show clearly that the number of people engaged in this anti-social welfare practice is relatively small.

I accept that not all abuses come to light; of course they do not. Also, it should be known that not all abuses go to court. The Department of Social Welfare are not out for blood; they are out for equity and justice. If they come across a particular case and it is clear that it is not a practice or has not continued for any length of time, that the money can be recovered and they are satisfied that no further abuses will be engaged in, up to now they did not necessarily insist on a prosecution. Therefore, the figures in that respect do not totally reveal the number of detections made by the Department. Like Deputy Andrews, I hope that the penalties provided for in this Bill will not be imposed. We are hopeful that their existence will be a deterrent. We are hopeful also that the limited amount of abuse being engaged in will cease in the knowledge that those penalties are now being provided by the Oireachtas and can be imposed by the courts.

Deputy Wyse said, first of all, that he could not understand the need for the Bill and then, towards the end of his remarks, welcomed it. Therefore, I am somewhat confused as to what is his attitude to the Bill.

I was talking about existing legislation.

But all the Oireachtas can do under our system is determine what are to be the maximum penalties for a particular offence that can be imposed by the courts. There is no obligation on the courts to impose those maximum penalties. This House, rightfully so—and I am sure everybody else will agree with me— cannot bring pressure to bear on the courts, cannot influence the courts in their decisions, cannot say to them that in this particular case they should impose the maximum penalty and in some other case impose a lesser one, or that they should acquit a person. That is a matter, rightly, solely for the courts. The courts have within their power the right to use their discretion in individual cases coming before them.

Deputy Andrews said he could not see the necessity, in one sense, for the increased penalties being imposed. Then he cited a few cases in which prison sentences had been imposed and were then suspended by the courts. I do not see anything wrong with that; I rather welcome that. It is proper that justice be tempered with mercy and compassion. In an individual case coming before a court, all of the relevant facts of that case being presented to the court, it is right that extenuating circumstances, if they exist, be taken into consideration by the court. I should not like to see a change in that compassionate approach by some—and I underline some—of the Judiciary. I do not think there is any case to answer with regard to this House embodying maximum sentences in law. It is a clear indication of the seriousness with which the Houses of the Oireachtas view a particular crime or breach of the law. It is then up to the courts to judge individual cases on their merits and, if they see fit, impose up to the maximum penalty allowable under legislation passed by the Oireachtas, or, should they see fit, to impose a lesser penalty than the maximum laid down.

But the important aspect of this matter is that there is building up a climate of opinion against progress in the field of social welfare as a result of the illegal activities of a small number of people. Such a trend will impede progress in this area, progress which undoubtedly is necessary because despite all the irresponsible statements and attacks that appear in the media these days in relation to the big benefits being paid under the social welfare code, the fact remains that in relation to the other EEC countries, we have a considerable way to go in relation to many aspects of social welfare before we can boast of our achievements.

Perhaps, more than anyone else, I am very conscious of the considerable increases that have been granted in social welfare payments during the past three years but we must bear in mind that old-age pensioners receive only a little more than £10 per week. Let us have regard to the facts and disregard the distorted and nonsensical comments that come to us through the media, comments which give a false impression of the whole picture. It is reasonable to request that, before making these general statements, the people concerned would at least take the trouble of ascertaining the facts.

Deputy Andrews made a valuable and a balanced contribution to the Second Stage debate. Among the questions he raised was that of the situation in regard to disability benefits—the number of cases concerned and the number of prosecutions that were brought in respect of abuses of such payments. This area of social welfare is one of the most difficult in which to detect fraudulency because benefits can only be paid fraudulently if there is collusion on the part of members of the medical profession. It is high time that some members of the medical profession introduced more integrity and became more conscious of their responsibility to society as a whole rather than to hand out glibly medical certificates, sometimes, I understand, on request and without examination. Perhaps there will be some reaction to this criticism of them but if what I say will have the effect of instilling a little sense of responsibility into some members of that profession, it will be worth while.

During this Second Stage debate the whole emphasis of the Opposition on abuses of the social welfare code has related to the making of claims against the code but there is another form of abuse which is at least as widely practised as that in relation to claims and which is much more serious because not only does it result in defrauding the State but it involves engaging in direct theft from employees. I refer to those employers who deduct at source employees' contributions in respect of social welfare payments but who do not return those payments to the Department of Social Welfare.

Very often such practices are not detected until an employee concerned submits to the Department what is a legitimate claim for benefit. At that stage it is discovered that although his contributions were deducted by the employer week after week, the employer not only has not paid his share of the contribution but has pocketed the employee's share. Can anyone think of a more despicable practice or of one more deserving of our total and unreserved condemnation? The Government are determined to put an end to this type of abuse.

Deputy Andrews referred to the complex nature of the Bill. I accept that it tends to be technical but as was pointed out in the explanatory memorandum, much of the Bill is a repeat of previous legislation, the reason for this being to allow Deputies to read the new provisions in their full context. However, the Bill is not as complex as Deputy Andrews suggests. Every possible care has been taken by the parliamentary draftsmen, by officers of the Department and those of the Attorney General's office to ensure that the Bill was simplified in so far as possible. Having regard to the nature of the Bill and to the complexity of our laws as well as to the essential element of closing off as many loopholes as possible, the Bill can be seen as one of the least complex pieces of legislation ever to come before the House in connection with social welfare.

Both Deputies Andrews and Wyse raised the question of the redrafting of our entire social welfare law. I spent a good deal of time in Opposition and, consequently, I am aware that when a Government announce their intention to take some specific action, the Opposition pick on the announcement and continue to call for the implementation of whatever is involved. I am not criticising that attitude. I regard it as a legitimate part of political life. Some time ago I announced that we were updating the social welfare laws. Deputy Andrews was fair enough to concede that, as I have discovered, this is a long, difficult and complex operation. We have made a very considerable amount of progress, and in fact new legislation updating all our previous social welfare legislation is in the Attorney General's office at the moment and we hope that it will be possible to circulate the Bill some time in the coming autumn.

I have asked for this Bill to be passed tonight. I am appreciative of the fact that Deputy Andrews has indicated he is prepared to do that, so in view of that I do not intend to take up too much time in my reply. If there are any other points that need clarification I am sure we could do this at some of the further Stages that still remain to be gone through.

I would like again to express my thanks to Deputy Andrews and to the House for the way this Bill has been dealt with and also for their co-operation in bringing it to a conclusion tonight as I have requested.

Question put and agreed to.
Agreed to take Committee Stage after the Fisheries (Amendment) Bill, 1976, Second Stage.
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