John Gormley
Question:31 Mr. Gormley asked the Minister for Social, Community and Family Affairs the involvement, if any, his Department has in the working group on guaranteed basic income; and if he will make a statement on the matter. [14599/99]
Written Answers. - Basic Income.
John Gormley
Question:34 Mr. Gormley asked the Minister for Social, Community and Family Affairs his views on whether the implementation of a non-means tested guaranteed basic income would be desirable in view of the number of people in work still claiming unemployment assistance; and if he will make a statement on the matter. [14600/99]
I propose to take Questions Nos. 31 and 34 together.
Partnership 2000 contains a commitment to carry out an independent appraisal of the concept and full implications of introducing basic income payment to all citizens. The agreement provides that this will be overseen by a broadly-based steering group.
The steering group is chaired by the Department of The Taoiseach, and comprises representatives of relevant Government Departments and the social partners. My Department is represented on the steering group.
The steering group has decided to commission the necessary research in two phases: Phase 1, which is largely complete, examines the tax rate needed to fund basic income, and the distributional implications of introducing basic income with this tax rate. Phase 2 is at an early stage; this phase is looking at the dynamic effects of the proposal, including its effects on employment, effects on economic growth, short and long-term budgetary implications and the gender dimensions of all of these. This research will inform any future developments, including the proposed Green Paper on basic income.
As regards the impact of basic income on fraud, any conclusion is purely speculative at this stage. Since basic income would be an automatic payment, not related to family status, labour market status or income, many potential sources of fraud would simply not exist. Others, such as claiming more than once, would still exist, and might be more difficult to detect. On the tax side, the tax rate needed to fund basic income would require a very substantial increase in marginal tax rates – this could increase the incentive for fraud in relation to taxation.
My Department's control policy aims to minimise fraud and abuse by promoting control as an essential element of the day-to-day work of the Department. To meet this objective, the approach to control is aimed at preventing fraud and abuse, such as concurrent working and signing; detecting incorrect payments, fraud and abuse of schemes at the earliest possible stage; and ensuring maximum deterrence. This involves checks and reviews carried out on a regular and targeted basis. My Department devotes considerable resources to the detection of cases which may involve concurrent working and signing. All suspected instances are fully investigated. If there is evidence of abuse, payment is immediately suspended, liability to repay any overpayment is established, recovery attempts initiated and prosecution is pursued where appropriate.