Vol. 253 No. 10
asked the Minister for Social Welfare the up-to-date position regarding claims for unemployment benefit by former employees of firms (names supplied) in County Monaghan which were disallowed because of the failure of the employers to pay insurance contributions due.
28.
asked the Minister for Social Welfare what steps, if any, were taken by his Department to ensure that social welfare cards were properly stamped and contributions paid up to date in respect of the former employees of firms (names supplied) in each year in which these firms operated; and if he will reveal the findings of any investigations.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 27 and 28 together.
The two companies referred to were incorporated on 8th July, 1968, and 1st October, 1969, respectively. They were both under the same management and both closed down for financial reasons on 27th January, 1971. The older company was surveyed in January, 1969, and arrears of £556 were assessed. Of this amount £50 was paid on demand but the balance was recovered only after legal action had been taken. On further visits made in March and July, 1970, it was found that the company had continued to default but it closed down, leaving no assets, before further legal action could be taken. The associated company was also surveyed in March and July, 1970. It was also in arrears and it also closed down before legal action could be taken, leaving no assets. In accordance with the recent amendment of the Social Welfare (Contributions) Regulations my Department have allowed credited contributions to all employees in respect of each unpaid contribution.
The allowance of these special credited contributions enabled payment to be made on the claim of one person which had initially been disallowed. Thirteen other persons whose claims to unemployment benefit were disallowed could not benefit under the amending regulations which were made on 8th March, 1971, because the claims were in 12 cases for periods of unemployment before that date and in one case because the claimant did not satisfy the first contribution condition for the receipt of unemployment benefit. This first contribution condition requires that at least 26 employment contributions be paid in respect of a claimant. It will be appreciated that the fact that more of the former employees of the firms did not benefit under the new regulations arises because the persons' unemployment occurred just before the regulations were made and such a situation should not recur. Furthermore, I intend to introduce legislation at an early date to provide for treating insurance contributions due but not paid as having been paid in cases where the worker himself has not been at fault.
29.
asked the Minister for Social Welfare if he will arrange that regular checks be made, at least quarterly, to ensure that social welfare cards are properly stamped, and so avoid the hardships involved for large numbers of workers who lose benefits due to them because of the failure on the part of employers to pay contributions.
The majority of employers fulfil their obligations under the Social Welfare Acts in a praiseworthy manner; those who delay or default are a small minority. The system of inspection in force in my Department is designed so as to devote most of the available official time to annual surveys of those employers who for various reasons are likely to default in their obligations. The system on the whole works satisfactorily and I do not consider that more frequent inspection is justified. The incidence of cases in which hardship is caused to insured persons because of failures on the part of employers will, I am confident, be reduced considerably as a result of amending regulations which I introduced recently and which provide for the crediting of contributions in such circumstances. To meet those situations where paid contributions are necessary to enable an insured person to qualify for benefit I propose to amend the Social Welfare Acts and I hope to be in a position to include an appropriate provision in the forthcoming Social Welfare Bill.
