asked the Minister for Social Welfare whether he will make arrears of social welfare contributions a liability on the assets of bankrupt firms to ensure that employees do not suffer as a result of their contributions not having been paid.
Ceisteanna—Questions. Oral Answers. - Welfare Contributions.
38.
Arrears of social welfare contributions are, in common with all other debts, a liability on the assets of a bankrupt firm. Furthermore, under section 58 (3) of the Social Welfare Act, 1952, arrears of social welfare contributions payable by a bankrupt during the four months before the date of the order of adjudication are included among the debts which under section 4 of the Preferential Payments in Bankruptcy (Ireland) Act, 1889, are, in the distribution of the property of the bankrupt, to be paid in priority to all other debts.
My Department is, however, at present examining the general question of loss of benefit by insured persons due to failure of employers to comply with the requirements of the Social Welfare Acts with a view to effecting such improvements in the position as may be feasible.
The Minister is aware that at present a serious situation does exist. I am sure he will agree that there are probably no firm figures but he does know that in the case of McIlvennas which closed down last year—I had occasion to write to him in that case — employees whose social welfare contributions were not paid by the employers were discriminated against and could not receive any benefit for months afterwards? In the case of McIlvennas people who had paid up their part of the contribution had to do without. Would the Minister give any indication of what he is going to do in the here and now about employees who pay their contributions and who, through no fault of their own, but because their employers do not fulfil their obligations, find themselves without any benefit whatever?
I am aware that there is a problem in this regard and I am investigating the feasibility of making other arrangements in regard to the matter. That is all I can tell the Deputy now.
Would the Minister not agree that there is a serious anomaly where you have people involved in a particular firm who may have investments in a number of other firms? Their interest in one firm ceases and they move on to other pastures while their unfortunate victims, the employees, are left without any cash whatever.
That would not be a matter for the Department of Social Welfare.
(Cavan): Is the Minister aware that where insured persons sustain losses because their employers fail to stamp their cards it is normally left to the insured persons themselves to pursue the employers and if the Minister is considering a revision of the whole system would he consider putting that obligation on the Department instead of on the insured person?
Yes, I am considering that.