Michael Bell
Ceist:64 Mr. Bell asked the Minister for Finance if his Department continues to operate a working group on the black economy; and, if so, the nature and results of the work of this group. [5566/98]
Written Answers - Black Economy Monitoring Group.
I am informed by the Revenue Commissioners that the black economy monitoring group, to which the Deputy is presumably referring, was set up initially under the Programme for National Recovery. It has been continued in subsequent national agreements, including Partnership 2000. Paragraph 3.22 of Partnership 2000 defines the role of the group as follows:
The Government are aware of, and will take further measures as appropriate to counter tax and social welfare fraud. The Black Economy Monitoring Group, which is drawn from the Revenue Commissioners, the Department of Social Welfare, the CIF, IBEC and ICTU, will continue its work of monitoring developments and reviewing the effectiveness of measures taken to combat tax and social welfare fraud.
The group continues to meet regularly, approximately every two months, to monitor developments and to review the effectiveness of measures taken to combat tax and social welfare fraud. The membership of the group has been extended to include the Small Firms Association, so that the particular concerns of the small business sector can be included in the group's deliberations.
The Revenue Commissioners and the Department of Social, Community and Family Affairs respond to the concerns raised in the group by carrying out investigations of the matters raised and, where there is evidence of black economy activity, taking appropriate action. Where necessary, the question of amending the tax or social welfare code would also be considered. Also, the Revenue Commissioners and the Department of Social Community and Family Affairs keep members of the group informed of new initiatives to tackle the black economy.
The group has proved to be a useful forum for exchange of information on black economy activity. Tangible results have been achieved in relation to the construction industry where the group made recommendations, since implemented, on the tightening up of the sub-contractor system. At present it is discussing the concerns raised by IBEC and the SFA about social welfare fraud and the difficulties being experienced by employers in enticing persons in receipt of social welfare benefits to take up employment.