Dáil Éireann Debate, Wednesday - 30 April 2014
357. Deputy Patrick O'Donovan asked the Minister for Social Protection her plans to address the issue of persons in the black economy undermining legitimate self-employed businesses; and if she will make a statement on the matter. [19170/14]
View answerA key priority for Government is to ensure that fraudulent activity within the social welfare system is vigorously prevented and combatted. A key element of this is the active policing of the shadow/hidden economy sector where there is a prevalence of social welfare fraud and tax non-compliance. This is as much about ensuring a level playing field for compliant businesses and taxpayers as it is about combating social welfare fraud.
The new Compliance and Anti-Fraud Strategy 2014 – 2018, which I launched last week, builds on the approach and progress made under the Fraud Initiative (2011 – 2013). The new Strategy contains a number of measures – some new and some of which are building on approaches that have been successfully rolled out over the past couple of years.
In conjunction with other agencies and, in particular, with Revenue, the Department tackles shadow/hidden economy working by a combination of joint intelligence collation, assurance checks and outdoor operations, including inspections and direct investigations.
Joint Investigation Units (JIUs) have been established between the Department and Revenue. These units play a key role in targeting particular types of shadow/hidden economy activity and workers in the employed sectors, including construction. Work carried out by the JIUs includes monitoring and compliance activity associated with sectors where tax compliance and social welfare fraud and abuse are common.
In addition, the Department participates on the Hidden Economy Monitoring Group with Revenue, employer and union representative bodies. This Group provides a formal structure to monitor developments, share experiences and make proposals for combating the shadow/hidden economy. The Department also engages and meets with business and industry representatives. Increasingly, the Department is finding that bodies and individuals are prepared to share insights and specific information with us with regard to shadow/hidden economy activity. Representative bodies are increasingly conscious of the fact that their members are not operating on a level playing field with shadow economy operators who are gaining an unfair competitive advantage.
The approach taken by the Department is frequently reviewed and is regularly adjusted to concentrate on the areas of greatest risk, based on its operational experience and credible information received from industry and business sectors.
