asked the Minister for Labour the progress which has been made in collecting arrears of the youth employment levy outstanding from farmers and the self-employed; if he will give the amounts outstanding at the latest date for which figures are available; and if he will make a statement on the matter.
Ceisteanna-Questions. Oral Answers. - Youth Employment Levy.
3.
Health boards are responsible for the collection of the youth employment levy from farmers for the tax years 1982-1983 and 1983-1984. The health boards estimate that at 31 March 1986 £5.1 million had been collected from farmers and £5.9 was still outstanding in respect of those tax years.
The Collector General is responsible for the collection of the levy from the self-employed for the tax years 1982-83, 1983-84, 1984-85 and 1985-86. The Collector General estimates that at 31 March 1986 £9.6 million had been collected in youth employment levy from the self-employed and £32.0 million was still outstanding in respect of those years.
The Collector General is responsible for the collection of the levy from farmers in respect of the tax years 1984-1985 and 1985-1986. At the end of March 1986 a total of £1.6 million had been collected from farmers and £8.5 million was still outstanding in respect of those years. Amounts outstanding include a propertion which will not be payable should corresponding income tax assessments be reduced.
Collection is a matter for the Collector General and the health boards and is being pursued in various ways. For example, the majority of health boards have had solicitors' letters issued and some boards have had this followed up by the issue of civil processes.
I understand from the Minister that the total outstanding from farmers in youth employment levy is £14.4 million. That is the total of £5.9 million plus £5.8 million over the four year period. Is that correct?
Yes.
In answer to a question which I asked in October last, I was told that there was an amount of £7 million outstanding from farmers. I take it that there is now an extra year added on. Is it correct that the amount outstanding, rather than going down is increasing both for the farmers and for the self-employed? The figure for the self-employed was £23 million and it is now £32 million.
The £5.9 million outstanding in respect of farmers for the tax years 1982-83 and 1983-84 is due in respect of 79,414 demands issued by the health boards. It must be borne in mind that some people will be served with a number of these demands and that most of the amounts outstanding are based on assessed incomes. Many of these demands would be contested and the outstanding amounts claimed might not prove to be correct.
Does the Minister not accept that there is a major problem indicated by the fact that in the two tax years, 1984-85 and 1985-86, only £1.6 million was collected from farmers? Does that not indicate a major problem in collection and has the Minister any idea as to how the outstanding amounts might be collected?
I accept that the record of the health boards in respect of the collection of this tax from farmers has not been as good as we would have wished but the method of pursuing those who still owe tax is proceeding in a number of ways. Two health boards have taken legal action by issuing solicitors' letters and in some cases are proceeding to take the people concerned to court. I take the Deputy's point in regard to the amount being paid back. From experience I am aware that many of these payments would relate to assessments only and are contested by the clients.
Does the Minister consider that the Collector General will do a better job in regard to the collection of these moneys than the health boards have been doing? If so, was that the purpose in changing from the health boards to the Collector General in respect of the collection of the youth employment levy? Are there plans for ensuring that the new method will be more successful than the old?
I could not give a definitive answer in that regard but it is fair to say that the health boards would have a more primary interest than the collection of tax for the Collector General. We hope that a more reasonable and effective system of collection will operate from the office of the Collector General.