asked the Minister for Energy whether he has assessed the scale of black economy operations in the forestry sector; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Forestry Sector Operations.
2.
The primary responsibility in this area rests with the Department of Social Welfare and the Revenue Commissioners. I will, however, expect Coillte Teoranta to ensure as far as possible that their contractors comply fully with the requirements of the Social Welfare and Revenue codes.
Would the Minister accept the private estimates which are currently being circulated which state that there are at least 1,000 people operating in the black economy in forestry and that it is costing the Exchequer £7 million?
While it is impossible to assess the actual numbers, the Department of Social Welfare last year initiated a campaign to track down workers operating in the black economy. Those in the forest service, the people in management and so on, co-operated fully and as a result there was a significant improvement. There are three categories of workers employed directly in the timber trade. First, there are the direct employees of Coillte Teoranta and they are all above board; secondly, there are the contractors who are operating under contract for service and who are generally not so bad and, thirdly, there are the operators who work for private companies and individuals to harvest timber. I think that is where the difficulty lies. However, as I have said, significant improvements have been made in that regard and our management staff are working in total co-operation with the Department of Social Welfare.
Is it not the case that some of these contractors whom the Minister describes as not so bad are in the direct employ of Coillte Teoranta and were formerly employed by the Department of Forestry? In that context does the Minister not feel that more can be done?
All the contractors must have a tax clearance certificate for any works carried out in excess of £10,000 per year. I think this is a safeguard for that category. There is also a new form of contract being used by the company which includes a provision whereby contractors are required to comply with all legal responsibilities of employers relating to tax, PRSI, et cetera. There has been a significant improvement in that category. Indeed we will endeavour through the vigilance of the management and our own inspectors in co-operation with the Department of Social Welfare to improve on the situation.