Joan Burton (Dublin West, Labour) | Oireachtas source

We also have a multiple claiming project as well as Operation Transport, which involves checking with the transport companies to ensure that the free travel arrangements are being used properly. Operation Lifestyle and Assets is a pilot project directed towards individuals whose lifestyle and displays of wealth or assets are not commensurate with social welfare dependency. In my own constituency, and I am sure in Deputy O'Dea's too, there are a number of individuals who, while claiming social welfare, seem to enjoy assets and lifestyles not consistent with that. That is being run with the support of the Revenue Commissioners. We have an operation in the taxi rental sector to ensure that taxi drivers are registered for PRSI and taxation.

Operation Narnia was an investigation, undertaken by the special investigation unit in conjunction with Customs and Excise, into an individual who has been in receipt of jobseeker's allowance and who was alleged to have been in receipt of the proceeds of significant cigarette smuggling. Operation Garden focused on garden nurseries to ensure that people employed in that industry are registered for PRSI and taxation and are not working and claiming at the same time. Operation Credit concerned self-employed people to see if there were any issues with regard to concurrent working and claiming. The townscape project involves feet on the street, where inspectors go into an area, for example a commercial street or an industrial estate, and check with employers that everybody in their employ is registered for PRSI and taxation. In a lot of cases, people will say that they only started work an hour ago and are not on the books yet. Nonetheless, it sends out a very strong message and has been very strongly supported, I am happy to say, by employers who are delighted to see the Department doing this. We have also been doing a special project in relation to people dealing in scrap metal and recycled materials because a number of concerns were expressed about that sector.

In the period January to August of 2012 a total of 13,228 reports were made by concerned members of the public. That compares with 10,300 reports for the same period last year. Members of the public are very anxious to support social welfare reform. People value, in particular, our payments to pensioners and they want to make sure that pensioners are not left at a loss because other people are scamming the system. There is a general social consensus on that.

The control savings target for 2012 is €645 million. We are reviewing 985,000 individual social welfare claims. We are writing to those in receipt of child benefit to check if they still live at the listed address and so forth. We have achieved about €401 million in savings to date. However, I wish to stress to all committee members that this refers to the prevention of expenditure which would have happened had we not got these systems in place. Unfortunately, I cannot present these as savings to the Minister for Public Expenditure and Reform, Deputy Howlin. I can only say that our expenditure levels are lower as a consequence. Some money can be repaid to the Department but because often the people involved have a social welfare income, we are limited by law in what we can make them pay back. This is an issue that my Department is examining, in consultation with the Office of the Attorney General.

Regarding Deputy Griffin's question on child benefit, the Revenue Commissioners are responsible for the issue of who makes tax returns. I have met them to discuss this matter. I am awaiting the final report by the advisory group on child benefit and am sure that group will have something to say on the matter too. The trend in Ireland has been that self-employed people use the Revenue on-line service, ROS, to file their income tax returns. Many people in the PAYE system do not file a tax return at all but I believe there is merit in their doing so. However, there are different views on the issue in the Revenue Commissioners and the Department of Finance, in terms of the administrative burden involved. In order to do what the Deputy spoke about, we would need a tax return to be filed by those in receipt of the child benefit payment.

The Deputy's constituent's suggestion of introducing a discount card for travel is one I had not heard of before. Earlier we had a discussion of the value of free travel. I mentioned to a colleague, Senator Moloney from south Kerry, that the fact that our pensioners can travel around the country is greatly appreciated by traders and hoteliers in places like Killarney. Those in the hospitality sector appreciate the value of the golden years travel and the business it generates. We must bear in mind that a scheme of free travel, particularly for pensioners, encourages them to be active, to be out and about in their own country and to enjoy some leisure breaks. People from Killarney may be in Dublin and vice versa. There are lots of clubs for older people who travel together and I value the scheme. However, as I explained earlier, we are reviewing various features and looking at some issues that the operators have with the scheme. Perhaps we can return to the issue at a later stage.