Vol. 372 No. 11
asked the Minister for Social Welfare the number of complaints received in his Department for the years 1984 to 1987, inclusive, regarding the failure of employers to pay social contributions on behalf of employees; the number of prosecutions for such failure; and the action, if any, he intends taking to eliminate this abuse.
15.
asked the Minister for Social Welfare the number of employers against whom any action was taken by his Department in 1985 and 1986 arising out of suspected or proven abuse of any social welfare schemes; and if he will make a statement on the matter.
Statistics dealing specifically with the number of complaints received regarding the failure of employers to pay social insurance contributions are not held in my Department.
Prosecutions for failure to pay contributions are a matter for the Revenue Commissioners who are the collection agency. Any cases of defaulting employers discovered by my Department are passed on to the Revenue Commissioners for appropriate action. In 1984 my Department reported 3,161 employers. The figures for 1985 and 1986 were 2,667 and 2,797 respectively. In 1987 to date, 812 employers have been reported to the Revenue Commissioners for failure to pay contributions.
My Department institute court proceedings against employers who fail to co-operate with or who obstruct social welfare officers in carrying out their investigatory duties. In 1985, seven employers were prosecuted for this type of offence and there were six cases in 1986. With regard to other forms of abuse of social welfare schemes by employers, such as collusion with employees in regard to the fraudulent receipt of sickness and unemployment payments, it is the policy of my Department to institute court proceedings against employers where there is sufficient evidence to do so. There were no such prosecutions in 1985 and 1986.
The practice of some employers of avoiding or delaying payment of PRSI contributions is not acceptable and I am concerned to see that effective action is taken in this area. While the primary responsibility for the collection of PRSI contributions rests with the Revenue Commissioners I will be ensuring that the inspectorate of my own Department will continue to have an important role in detecting cases of non-payment of contributions. I am particularly concerned to see effective combined action by Revenue and Social Welfare in this area so that this particular form of abuse, the burden of which in the final analysis falls on other contributors and on taxpayers generally, is eliminated.
May I ask the Minister if it was intended to take Nos. 14 and 15 together?
Yes, a Cheann Comhairle.
Questions Nos. 14 and 15 were taken together. Deputy Wyse, we are now in Priority Question Time so I shall have to pass on very quickly.
May I ask the Minister if he is aware that this is organised abuse by employers and is inflicting quite a lot of hardship on a worker who would have to wait for months for an investigation into contributions which he has already paid through his employer. I am somewhat disappointed that the Minister has not done something more positive to bring to an end this organised abuse by some employers. Is the Minister aware that this is organised?
I refer the Deputy to his question. He asked for certain numbers which I have provided and he also asked for the numbers of prosecutions and the measures I intend to take to eliminate this abuse. As I pointed out in the reply, prosecutions for failure to pay contributions are a matter for the Revenue Commissioners who are the collecting agency, and we report to them immediately. I gave the figures of the people whom we reported to the Revenue Commissioners. We will also try, in the development of our computer systems, to link up with the Revenue Commissioners as quickly and as urgently as possible to ensure that that information is dealt with immediately. The ensuing action is a matter for the Revenue Commissioners. On the other hand, the Deputy now mentions a different aspect, that of people waiting months for payments. If the Deputy has any cases in mind I will do anything I can to hurry up such payments because I agree entirely that the employee, where he or she has paid contributions and the employer has not submitted them, should not be left without benefit. If the Deputy is aware of any cases I will certainly pursue them very urgently.
It is now 3.35 p.m. and we have very definitely encroached upon Priority Question Time. I must now proceed directly to priority questions.
May I ask——
I am sorry, Deputy——
It is a point of order.
Certainly, Deputy.
I am seeking permission to raise on the Adjournment the subject matter of Question No. 23.
I will communicate with Deputy Higgins in that regard.
