Dáil Éireann debate -
Tuesday, 16 Nov 1993

Vol. 435 No. 9

Written Answers. - Social Welfare Fraud.

Thomas P. Broughan

Question:

140 Mr. Broughan asked the Minister for Social Welfare the sums of money involved in detected social welfare fraud in the construction industry for the year 1992 and to 1 November 1993; the prosecutions pending; and if, in view of the widespread use of C45 subcontracting in that industry he will give the way in which he intends to stop the future theft of public moneys.

Minister for Social Welfare (Dr. Woods)

Figures for savings, fraud detection and prosecutions on a national basis are not kept on a sector by sector basis.

However in the Dublin Regional area, which covers counties Dublin, Kildare and Wicklow, a specialist squad was set up in 1992 to focus on employers in the construction industry. To date about 550 employers have been surveyed and savings of the order of £2.5 million have been indentified. I recently announced the introduction of two further squads to concentrate on this area.

There are no prosecutions pending at this stage as employers are being given the opportunity to avail of the amnesty from prosecution.

My Department is not aware of any widespread abuse with the operation of the C45 system. The operation of the system is regularly reviewed by my Department is conjunction with the Revenue Commissioners.

Employers and contractors in the construction industry are obliged to notify my Department when an employee or sub-contractor is hired. This system is being backed up by a sustained campaign of visits to employers by the Department's inspectors. Over the period of 1991 to 1993 approximately 40,000 employers will have been visited. A significant proportion of these are employers and contractors in the construction sector.

Some years ago, the Government decided that State contracts should not be awarded to firms who do not comply fully with their Tax and PRSI obligations.

In the light of the considerable investment envisaged in the National Plan I will be introducing further measures to ensure that employers and sub-contractors meet their PRSI and notification obligations, and to root out any abuse of the social welfare system.