Dáil Éireann debate -
Wednesday, 3 Apr 1996

Vol. 463 No. 7

Written Answers. - PRSI System.

Kathleen Lynch

Question:

34 Kathleen Lynch asked the Minister for Social Welfare the proposals, if any, he has to further improve the mechanisms used to detect employers who fail to honour their obligations under the PRSI system; and if he will make a statement on the matter. [7210/96]

Minister for Social Welfare (Proinsias De Rossa)

The strength and integrity of the PRSI system depends on the appropriate contributions being paid to the social insurance fund on 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.

PRSI is an important part of our social welfare system. It provides a range of benefits to employees and their dependants and to self employed contributors at certain specified times in their lives.

The Department makes a determined effort to detect employers who fail to honour their obligations under the PRSI system. This effort is undertaken to ensure that all employers comply with their PRSI obligations and to prevent people in employment from fraudulently claiming social welfare payments. A programme of employer inspections is carried out each year bringing the total number of employers visited to 56,500 in the five year period to the end of 1995. A total of £75 million in unpaid PAYE-PRSI has been detected as a result of these inspections. The programme of inspections includes a number of revisits to employers to ensure that they continue to comply with their legal obligations. All indicators show that there is now an increased level of employer awareness of, and compliance with, PRSI legislation.

As part of the programme of employer inspections 48 of my inspectors form part of a nation-wide joint inspection unit with inspectors from the Revenue Commissioners. This unit uses the combined legal powers and expertise of both organisations to tackle abuses in both the social welfare and tax systems. Special units have also been set up to focus on specific industrial sectors.

In addition, my Department also now employs professional accountants who are available to assist in the inspection of larger companies. The approach taken by these inspections is to investigate the main employer and any other company which has a relationship with that employer such as subsidiaries and those providing ancillary services.

Information technology now plays a key role in targeting employers for inspection. Investigators use laptop computers to get immediate access to data held on central databases during the course of inspections. In addition, through analysis of data held on the Department's central records database employers are selected for inspection.

The Department's administrative and legislative procedures are continually reviewed and updated and all necessary measures taken to detect employers who fail to comply with their PRSI obligations.