Dáil Éireann debate -
Wednesday, 16 Jun 1993

Vol. 432 No. 4

Written Answers. - Social Welfare System Administration Costs.

Jim O'Keeffe

Question:

51 Mr. J. O'Keeffe asked the Minister for Social Welfare the amount of money spent on administering the social welfare system; the number of personnel involved; and whether any study of administration practices and comparative costs in other countries has been undertaken.

Minister for Social Welfare (Dr. Woods)

The administration of the social welfare system is carried out by the staff of my Department who numbered 4,017 at the end of 1992.

Also directly involved are 75 managers of local branch employment offices who provide services for the unemployed on behalf of my Department. These contractors employ staff whom they pay directly. The number so employed is a matter for the individual manager and the Department does not keep information on them.

In addition a significant number of personnel in other organisations are involved to varying degrees in administering the system. The supplementary welfare allowance scheme is administered by the health boards on my behalf. Many of my Department's weekly and monthly payments to customers are made at post offices. Pay related social insurance contributions are collected by the Revenue Commissioners. Information is not available on the numbers in these organisations who are involved on social welfare work. The total cost of administering the social welfare system, including the cost of services provided by the other organisations mentioned, amounted to £161 million in 1992.

Administration costs amount to less than 5 per cent of the cost of the services at £3.7 billion.

My Department is constantly looking at ways to improve its administrative practices. This is part of the ongoing commitment to provide the best possible customer service.

My Department is recognised as leading the field particularly in developing services for customers backed up by the latest information technology. It is in regular contact with other social security organisations through the international social security services association and the international institute for administrative studies. The sharing of knowledge and experience is of great value to all participating social security organisations including my Department. Indeed, my Department has been invited to make presentations on the Irish social security system and its administration to a number of international symposia of these institutes. Also, a number of delegations from Europe, including the UK, and Asia have visited the Department to discuss the use of information technology to support social security administration and learn from the Department's experience. In addition the Department has been invited by a number of international consultancy firms and the World Bank to provide expert assistance on the development and implementation of social security systems in Eastern Europe and Asia.

Comparative studies of costs in other countries have not been undertaken. The nature of social welfare schemes vary widely from country to country making it difficult to draw accurate comparisons.

I am very conscious of the need for economy in the use of public funds. I am, therefore, pleased to have been the first Minister to conclude, in 1990, an administrative budget agreement with the Minister for Finance, the key objective of which was to improve efficiency and effectiveness in the Department.