Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Thursday, 27 Oct 1966

Vol. 224 No. 15

Adjournment Debate. - Non-stamping of Social Welfare Cards.

I addressed the following question to the Minister for Social Welfare:

To ask the Minister for Social Welfare the number of employees that have been denied social welfare benefits because of their employers' failure to stamp their cards in the years 1964 and 1965, and during the past nine months.

In reply, the Minister said that statistics were not available which would enable the information sought to be given.

This strikes me as rather peculiar and indicates one-sideness on the part of the Minister's Department because the Minister was in a position in relation to a previous question to indicate the number of prosecutions that had been taken against employers who had failed to stamp their employees' cards. There is a clear indication that the Minister's Department are not concerned or have not the means to ensure that workers will be safeguarded to the extent that, by having their cards stamped, in respect of which money is deducted from their wages, they will benefit eventually.

There have been a number of cases of failure on the part of employers to stamp cards. Having regard to the number of such cases, one would imagine that the Department and, in particular, the Minister, would have done something positive to avoid such happenings. It is extremely unfair to expect a worker to know whether or not the employer is stamping cards. There is a great deal of trust involved. The worker has no access to the employer's records. However, there are in the Minister's Department a number of inspectors—I am inclined to think not too many—whose duty it is to make spot checks for the purpose of ensuring that cards are stamped.

I have come across a case of a clothing factory in Marlboro Street, Dublin. The factory operated for three years. During the course of those three years, complaint was made about the employer's failure to stamp cards. Notice was drawn to this when members of the staff left and drew their cards. The matter was reported to the Department and, in consequence, there were a number of inspections of the factory. Eventually a summons was issued against the employer but almost 12 months elapsed before the employer was brought to court. When the case was called, the employer had gone to Canada. The workers were left high and dry and were unable to obtain benefit because their cards had not been stamped.

That such cases could occur indicates the injustice and one-sideness in connection with this whole scheme of things. They are not isolated cases The Dublin Council of Trade Unions have entered into correspondence with the Minister about this matter, urging him to adopt ways and means of ensuring that this practice is discontinued. It is beyond my comprehension as to why the Minister cannot evolve a system which would ensure that employers will not get the opportunity to avoid paying their share of the stamp and, in addition, deduct the employee's share from his wages and not stamp the cards. When the employer fails to stamp the cards and eventually goes away, it means that the employee has lost the money paid by way of contribution and is denied benefit.

It is an extraordinary state of affairs that, on the other hand, the employee is obliged to conform to the PAYE system, in respect of which deductions are made from his wages and, if the employer absconds, the worker is not held responsible. For some unknown reason, the Department of Social Welfare continues to hold the worker responsible for the stamping of cards. This is a matter that is crying out for attention. I can not understand why there is not sufficient liaison between Departments so that one Department would show the other the right thing to do. Maybe it is because it is working class people who are involved, people who have to pay these contributions as a form of insurance in order that they will benefit should they become unemployed, as compared with moneyed persons who do not have to contribute to social insurance.

The amazing thing about the factory to which I have referred is that although the factory inspector has made periodic checks over three years, the last check he made was 12 months before the employer was prosecuted and at that time the employer was found not to be stamping cards. Almost 12 months elapsed without anything being done and then the employer left the country and the workers were left holding the baby. Representations have been made to the Department about this and the answer given is that the workers have a right to appeal against the decision not to pay the social welfare benefit, that they can appeal within 21 days but that the Department cannot be sure that it will do any good, that they cannot do anything about it, that there would be no real point in making such an appeal. This clearly indicates that the powers that be—I assume, the Minister—have decided that nothing can or will be done in the matter.

During the course of the supplementaries today, I thought I heard the Minister say he would like to have information in connection with matters of this kind. If that is all that is required, we can give him plenty of it. But I see little point in giving the Minister information about the happenings I have described unless something positive is done about them. If the Minister is not at present in the position to do anything about them, he should spare no time in arranging to do something about them. As I said, it appears to be a simple matter.

In his reply today, the Minister referred to an annual certificate being given to a person. What I am concerned about is the weekly return. Any man or woman in employment has no say in whether or not money should be deducted from his or her wages for PAYE or social welfare contributions. The law is there: it must be taken from their wages. Surely, when we have reached that stage, the workers concerned should, in the case of social welfare, be afforded some protection? Instead they are told: "Your man has gone to Canada. If you hear about him, come back and let us know and we will do something about it". This was told to 12 young girls working in the clothing factory in Marlboro Street. It appears that one of them is expected to go down to Shannon, another to Dún Laoghaire and another to the North Wall to keep a watch on this fellow's movements. This is quite ridiculous.

This matter has been the subject of representation by the Dublin Council of Trade Unions to the Minister. All that is being sought is security for working men and women, an assurance that when money is deducted from their wages, it will be taken care of and that they will not be left wondering whether they are working for a bad employer or a decent employer so far as this is concerned. Unfortunately, I have not got at present the number of Department inspectors who have to go round and make an inspection of each premises with a view to ensuring that social welfare cards are stamped. However, I think I am safe in saying they are few in number. I am positive one could count them, if not on one hand, then certainly on two. If we take into consideration the number of places of employment there are, even in Dublin, let alone the whole country, we realise how this system cannot operate properly. In view of the many duties such inspectors have to carry out, apart from inspecting such premises, surely this is a matter crying out for attention?

I would ask the Minister to indicate if he has any real intention of putting an end to this low, mean, despicable practice on the part of some employers who, in consequence of what they do, leave unfortunate working class people holding the bag.

I should like to add my experience to that expressed by my colleague, Deputy Mullen, in regard to the manner in which the Department treats employer and employee. The Minister said today that he had no statistics in regard to the number of prosecutions. If he had a grip of his Department or had any concern for the workers, it would have been a simple matter for him to contact the Department of Justice. There he would have got all the statistics he wanted concerning the number of prosecutions over a period.

I reported to the alleged Department of Social Welfare 12 months ago a case in which eight workers on a sewerage scheme in County Limerick were deprived of benefit because their employer failed to stamp their cards. Some months previously that employer was prosecuted and fined £5 for not stamping the cards of those eight men, six of whom were married. That was practically two years ago. Since then these people have been deprived of their benefit while that man is still continuing his work as a building contractor in another county. I made representations to the Minister on many occasions in regard to this case and got no satisfaction. Now most of these unfortunate people are drawing home assistance from Limerick Health Authority. That comes out of the rate-payers' pockets and not out of the Department's.

We in the Labour Party fail to understand the inhuman attitude of the Minister in the manner in which he pursues this regulation. Why should these unfortunate men be deprived of benefit to which they have duly contributed? Deductions made week after week are fraudulently put aside to the employer's benefit. Then these workers are deprived of their social welfare benefit. That is the case we are making. Within the past month or six weeks, I reported another case to the Minister where the employer failed to stamp a card. The answer I got back was that the employee concerned had the right of prosecution. In 1966, in holy, Catholic Ireland, is this what we have to put up with because of the inhuman approach by the Minister? Of course, inhumanity comes easily to him.

This matter concerns me gravely. I bring unfortunate people down to the home assistance officer week in and week out begging and craving for £1 or 30/- to keep their bones together because of delays by you and your Department. The responsibility for this rests on your shoulders. We are going to keep pursuing this until the Minister takes a human approach and treats Irish people as they should be treated and not like dogs.

The non-stamping of cards by employers is looked upon as a very serious offence by my Department and by myself. In such cases, it is the practice to prosecute the defaulting employer for breaking the law in this regard and to sue him for the arrears of contributions due because only the contributions are, in fact, due to my Department. In the case of an insured person who loses benefit because of the default of the employer to stamp the card, that is, under the law, a debt due by the employer to the person concerned.

My Department notifies people who have lost benefit in this respect that, if a person is not in a position to sure for the loss of benefit, the Department will consider suing for him and, in fact, a number of such cases are taken each year. For instance, there are approximately 8,000 disability benefit cases which have either to be refused or in which a reduced rate of benefit is payable because of an insufficient number of stamps being credited to the person concerned. The vast majority of these are of course just because of the fact that, for one reason or another, the person was not entitled to have the requisite number of stamps. We receive, out of these 8,000 cases which are so refused, approximately 150 complaints that the cards should have been stamped by the employers but were not. These people are all entitled to their rights in this respect. In fact, only about 30 of them come back to us. The others deal with the matter themselves in some way with their employers.

In cases of people who are unable to take proceedings themselves, my Department is prepared to do it and we do recover an amount of benefit for people in this respect each year. As regards the employers who default, they are prosecuted by the Department. I certainly consider it a matter of urgency that this should be done as soon as possible and I am satisfied that this is in fact the position.

It is, of course, as the Deputy who made the statement knows, completely untrue to say that I stated here today that I was not in a position to state the number of cases in which prosecutions take place. In fact, I gave that information to the House already today. Every possible step is taken to see that the arrears of contributions are paid and every possible assistance is given by my Department to people to recover any benefit they have lost. I cannot see that there is very much more that can be done in the matter. We maintain an inspection staff for the purpose of ensuring that the law is complied with by employers and a number of prosecutions take place each year. It may be that the courts do not deal as severely with these offences as they should but I can hardly be held responsible for that.

With regard to this question of the issuing of receipts, I am sure most reasonable people will see that it would be impracticable to issue receipts to approximately 700,000 people every week in respect of these insurance stamps, as has been requested here and, in fact, it would be a fairly considerable annual administrative expense to do it. As a result of the representations, to which Deputy Mullen referred, by the Dublin Council of Trade Unions, and as I stated here today, a new arrangement has been come to with regard to the surrendering of these cards, whereby, before the employees' cards are surrendered at the end of the contribution year, the employer is now required to obtain the signature of each employee on the card so that now, at least, it is ensured that each employee will know at the end of the contribution year whether or not his card has been stamped. Of course, employees are entitled at present to inspect their cards not more frequently than once a month to ensure that they are stamped. I appreciate that employees generally just would not do that and that it would not be very popular with the employers if they demanded it.

You are dead right.

I cannot see what more can be done in the matter. We look upon it as a very serious thing that some employers default in this manner. Everything possible is done to ensure that such breaches of the law are detected and that the offenders are brought to justice.

May I ask a question?

Why are they deprived of their benefits?

Give them the same protection as PAYE.

It is a completely different thing from PAYE. These benefits provided under the Social Insurance Acts can be paid only provided certain contribution conditions are fulfilled. As I say, the insured person who is deprived of benefit because of a defaulting employer has this redress against the employer. Unfortunately, as in the case of anybody who has to take action against an individual for something to which he is entitled, if the person concerned absconds, there is nothing he can do about it. That is the same with regard to any other type of debt.

It does not happen with tax.

I cannot see any way in which that can be guarded against.

I am certainly anxious to make this more watertight, if at all possible.

It is very hard for the blind to see.

The only thing I think it might be possible to do is to extend this new idea of requiring the employer to get the employee's signature on the insurance card. The requirement now is that this must be done before the card is surrendered. I am considering whether it would be possible to insist that that signature would be obtained, say, once every quarter so that the employee would know, even before the end of the year, whether or not the employer was stamping his card regularly. I think that should meet the situation. Any employee, then, who was not asked to sign his card at the end of each quarter would have reason to believe that the employer was not fulfilling his obligations under the law in this respect and could report the matter to my Department when action would be taken as speedily as possible.

The Dáil adjourned at 5.30 p.m. until 3 p.m. on Wednesday, 2nd November, 1966.

Barr
Roinn