Dáil Éireann debate -
Tuesday, 23 Jan 1996

Vol. 460 No. 3

Written Answers. - Non-payment of PRSI Contributions.

Kathleen Lynch

Question:

40 Kathleen Lynch asked the Minister for Social Welfare the number of cases known to his Department regarding employers who failed to honour their obligations under the PRSI system for the most recent year for which figures are available; the amount lost to the social insurance fund from such cases; the number, if any, of such cases which were prosecuted; the plans, if any, he has to further improve collection; and if he will make a statement on the matter. [1287/96]

Minister for Social Welfare (Proinsias De Rossa)

PRSI is an important part of our social welfare system. It provides a range of benefits to employee and self employed contributors at certain specified times in their lives. The strength and integrity of the PRSI system depends very much on the appropriate contributions being made to the Social Insurance Fund in time by employers, employees and the self employed as laid down in social welfare legislation.

Contributions due to the social insurance fund are collected in the main by the Revenue Commissioners, together with income tax due. The measures taken by the commissioners to ensure that all tax due is paid also help to ensure that all PRSI due is paid.

In addition, in so far as PRSI is concerned, the measures taken by the commissioners are augmented by inspections of employers by officers of the Department of Social Welfare. One of the groups of officers on this work also includes Revenue Officials. These inspections by my Department pay particular, but not exclusive, attention to areas and to employers where there is a greater likelihood of non-compliance.

The employer inspections by my Department comprise a number of tasks such as detailed examination of employers' records to ensure that correct PRSI payments are being made in respect of all their employees; outlining employers' responsibilities with regard to Social Welfare legislation and, where Revenue staff are part of the inspection team, tax legislation; giving advice and information on matters such as insurability and the correct classes of contributions applicable; checks to ensure that employees are not concurrently working and claiming social welfare payments.

In general employers honour their PRSI obligations. As a result of the Department's programme of inspections in 1994 over 1,500 of the employers investigated had failed, either completely or to some extent, in their PRSI obligations. This represents an improvement of 2 per cent over the previous year in that of those investigated, some 79 per cent were found in 1994 to be fully satisfying the requirements and in 1995 this had increased to 81 per cent.

Arising from these inspections PRSI arrears amounting to £8.3 million has been assessed, of which £3.6 million has been collected by my Department's inspectors. The outstanding amount falls to be collected by the Revenue Commissioners and the relevant details have been forwarded to them.

As a result of the inspections carried out by the Department a total of 25 employers were prosecuted in 1995 for failure to carry out their PRSI obligations. Of these, 24 were convicted. In addition, where appropriate, civil proceedings are considered to collect any outstanding moneys.

The Department will continue its programme of employer inspections in 1996. This programme is seen as having a key role in detecting and curbing the non-payment, or payment at the incorrect rate, of PRSI by employers and any concurrent working and claiming of social welfare payments by their employees.