asked the Minister for Social Welfare her views on the substantial losses being incurred by businesses, especially the retail sector, who are cashing social welfare cheques to find that some months later that these cheques are not honoured by her due to fraud; the proposals she has to safeguard people who cash these cheques in good faith; if she will consider introducing some mechanism for identity purpose to ensure that such cheques are presented only by social welfare recipients; and if she will make a statement on the matter.
Written Answers. - Social Welfare Cheques.
120.
The Department of Social Welfare issues in excess of four million cheques each year. As only a very small proportion of them are incorrectly cashed, it is not correct to say that traders, banks, etc. who are involved in the cashing of these cheques are undergoing substantial loss.
Nevertheless the Department is concerned that all its cheques should be properly cashed for the benefit of claimants and over the past year there have been discussions with many of the leading retailers and representative groups to ensure that everyone engaged in cashing social welfare cheques takes proper precautions.
The Department has also advertised on a number of occasions warning traders etc. of the need to be careful as to the identity of persons for whom they were cashing cheques. Guidelines have been issued to assist traders and there is currently a distribution of these guidelines being organised through one of the relevant major representative bodies.
Over the past year and a half the Department has greatly improved its administrative system for dealing with the improper encashment of its cheques and has recently introduced new computer aided procedure for dealing much more speedily with the problem. Under the new procedure the time taken to identify, retrieve and return cheques wrongfully cashed has been substantially reduced.
Consideration has and is being given to the question of identification for claimant cashing social welfare cheques but the Deputy will appreciate that the development of a safe, secure yet cost-effective and efficient system is fraught with many problems and difficulties.
However, in the final analysis the onus for taking due precautions in the matter of cashing social welfare cheques must, as with all cheque cashing, lie with the trader, bank etc. It is hoped that the steps that the Department has taken to date, coupled with the ongoing co-operation of all who are involved in the area of cheque encashment, will significantly and progressively reduce the level of the problem.