Crackdown as number of bosses failing to pay PRSI doubles

WELFARE inspectors are to crack down on penny-pinching bosses after discovering a significant increase in employers failing to pay social insurance on behalf of their workers.

In 2009 11% of employers visited by welfare officials were not compliant with their PRSI commitments.

Secretary general of the Department of Social and Family Affairs Bernadette Lacey said 740 inspections carried out in 2009 had revealed the non-compliance rate had more than doubled.

And she said her department would be “ratcheting up” its efforts to catch bosses who are failing to meet their obligations.

“It is a very big jump and it is something we are focusing on,” she said.

Ms Lacey produced figures from previous years which showed in 2008 the non-compliance rate was 5%, in 2007 it was 4%, and in 2006 it was 6%.

After questioning from Labour Party deputy Roisín Shortall at the Public Accounts Committee, Ms Lacey said it was not an acceptable situation.

She did not offer any reason for the dramatic jump, but said the department was prepared to subject rogue employers to criminal prosecutions.

There were nine prosecutions taken in 2009, but these relate to previous years’ inspections.

Acting chairman of the PAC Darragh O’Brien asked for comprehensive information on PRSI evasion to be supplied to the committee when it returns to the issue in April.

Ms Lacey also outlined a series of welfare schemes that have been the focus of fraud and overpayment.

Between 2006 and 2008 welfare overpayments rose from €45 to €55. In 2008 38% of payments were because of fraud.

Disability Allowance and Carers’ schemes have been identified as areas of particular concern.

The issue of child benefit payments for 66,000 non-Irish European Union citizens was also raised.

Her figures revealed that at least €15.8m a year is being sent as child benefit to 8,800 children living abroad.

Their parents are working in Ireland and are entitled to send the benefit home to other EU countries. The department said it has made extensive efforts to verify the existence and relationship of these families before money is paid out.

Ms Lacey also sought to clarify misinformation which was first brought into the public domain by Minister Mary Hanafin.

She pointed to the case of Ballyconnell in Cavan where it had been claimed there were 1,044 people on the dole despite there being just 747 residents – an example first raised by Ms Hanafin and picked up by RTÉ’s Prime Time for a segment on welfare tourism.

Ms Lacey said the Ballyconnell office covered a catchment area of 14,000 people and, in fact, its unemployment rate was below the national average.

She said she wanted to correct the record on this issue.