Written Answers. - Comments on Social Welfare Recipients.
Tony Gregory
Question:
9
Mr. Gregory
asked the
Minister for Social Welfare
his views on the statement of the Governor of the Central Bank, Mr. Maurice Doyle, on 18 November 1993, regarding persons on social welfare payments and his views that those on social welfare payments who are not actively seeking work should not receive social welfare payments.
Frank Crowley
Question:
25
Mr. Crowley
asked the
Minister for Social Welfare
if he will ensure that innocent persons do not suffer in his Department's efforts to reduce the incidence of fraud in the social welfare system.
Ivan Yates
Question:
27
Mr. Yates
asked the
Minister for Social Welfare
if he will ensure that innocent persons do not suffer in his Department's efforts to reduce the incidence of fraud in the social welfare system.
Question:
29
Mr. Burke
asked the
Minister for Social Welfare
if he will insure that innocent persons do not suffer in his Department's efforts to reduce the incidence to fraud in the social welfare system.
Michael Noonan
Question:
53
Mr. Noonan (Limerick East)
asked the
Minister for Social Welfare
if he will ensure that innocent persons do not suffer in his Department's efforts to reduce the incidence of fraud in the social welfare system.
I propose to take Questions Nos. 9, 25, 27, 29, and 53 together.
The comments referred to by the Deputy were contained in a speech by the Governor of the Central Bank which considered aspects of the unemployment problem and measures to address it. The statement highlighted the areas where reforms are, in the Governor's view necessary:
— first, a reduction in the tax wedge, that is the difference between the cost of labour to the employer and the take-home pay of the employee;
— secondly, reform of the social welfare and taxation systems to improve incentives;
—thirdly, promotion of a more flexible wage-bargaining process and more efficient work practices.
In commenting on the issue of reform of the tax and welfare systems the Governor raised the issue of the possible effect of the level of unemployment payments on the incentives to work, particularly at low pay levels, on the creation of welfare and poverty traps and on the development of the black economy. He advocated a widening of anti-fraud measures of the Department including measures to ensure that people not actively seeking work should not receive welfare entitlements.
Let me say at the outset that my first priority as Minister for Social Welfare is to ensure that claimants, including the unemployed, receive the benefits to which they are statutorily entitled. The vast majority of claimants are genuine and need the payments which they receive. I do not accept that the levels of social welfare payments are such as to be a disincentive to work. The disincentives issue is a very broad one, involving, as the Governor acknowledged, the whole question of the interaction of the tax and social welfare systems. The Government have set up an expert group specifically to examine this question.
In relation to fraud I am devoting a considerable amount of resources to the detection of fraud within the system, because I believe that it undermines the credibility and effectiveness of the system; damages the economy and reduces the funds available to those genuinely in need. It is a statutory condition for receiving unemployment benefit or assistance that a person must be available for and genuinely seeking, but unable to find, suitable employment.
Claimants are asked when making a claim for unemployemt benefit or assistance to supply information regarding their efforts to obtain employment and may also be asked subsequently at any stage of their claim about this matter. The information supplied by claimants when taken in conjunction with other evidence available regarding the claimant's employment history, is used by the deciding officer in determining whether the person concerned is available for and genuinely seeking work. If there is any element of doubt about the position further relevant information is sought.
Each case has to be considered on its own merits and it is a matter for the deciding officer to decide the evidence required in any case having regard to the individual circumstances of the claimant.
Claims are reviewed subsequently on a regular basis to ensure that the claimant continues to satisfy the conditions for entitlement to payment.
The vast majority of decisions are made by local deciding officers with knowledge of the level and type of opportunities available in the locality and awareness of the individual's circumstances. Each of the 8 regions of my Department also has investigators specifically devoted to controlling fraud and abuse of the social welfare system and their record of success is impressive.
I would like to assure Deputies, however, that genuine customers of my Department have absolutely nothing to fear from activities which are directed at the prevention of fraud and abuse of the social welfare system. Activities undertaken to reduce the incidence of fraud are aimed at those who are attempting to cheat the taxpayer. Staff of my Department are trained to be courteous and sensitive in their dealings with members of the public and also to respect the dignity and privacy of each individual claimant.
Continued efforts will be made to ensure that the social welfare system is effective in delivering payments to those who are entitled to them and preventing unwarranted claiming.
