Dáil Éireann debate -
Wednesday, 21 Apr 1999

Vol. 503 No. 4

Written Answers. - Social Welfare Fraud.

Ruairí Quinn

Question:

69 Mr. Quinn asked the Minister for Social, Community and Family Affairs the plans, if any, he has to strengthen the fraud inspection section of his Department to ensure that building sites and other places of employment are properly inspected in view of continuous concerns raised by BATU and other trade unions. [10350/99]

Minister for Social, Community and Family Affairs (Mr. D. Ahern):

There are currently 600 officers in my Department involved in the control of fraud and abuse in the social welfare system. Of these, 417 are deployed on a full-time basis in investigation and control work which includes the inspection of employers in relation to their PRSI and social welfare obligations generally.

My Department has a programme of inspection of employers'places of business, including employers in the construction industry, to ensure that they are complying with their legal obligations under social welfare law. A significant element of these checks relate to the PRSI system, particularly to ensure that the correct rate of PRSI is applied.

Concerns have been raised by the Building and Traders Union, BATU, and other trade unions in relation to the operation of the C45 system governing self-employment in the construction industry. This aspect receives particular attention in the course of employer inspections.

My Department works closely with the Revenue Commissioners to ensure that people working in the industry are aware of the differences between employment and self-employment. In this connection a guide, jointly prepared by my Department and the Revenue Commissioners, has been made available to outline the distinguishing features of each type of arrangement and the importance of the issue as far as social welfare entitlements are concerned.

Employer inspections are an important element in the drive to control abuse of the social welfare system and the quality and quantity of these are reviewed on a regular basis. The deployment of resources on investigation and control work throughout the country is also reviewed on an ongoing basis by my Department to ensure that resources are targeted as effectively as possible to combat fraud and abuse where it is likely to occur. There is also ongoing contact with employer and trade union interests in relation to this matter.

The need for special attention to be given to sectors of industry which are more open to fraud and abuse of social welfare payments is recognised. The construction industry is one such industry and over the years various targeted measures have been put in place to tackle fraud in that industry. In some cases, this has involved assigning inspectorate staff to work exclusively for a period on that sector.

For example, a group of inspectors focused exclusively on the construction sector in Dublin, Kildare and Wicklow for a period up to last year. The current practice, however, is to ensure that all staff involved in employer inspections focus, as appropriate, on any area, including construction, where fraud is considered likely to be prevalent and take the appropriate action.