Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 83: To ask the Minister for Social and Family Affairs if she has carried out a review on the way inspectors are estimating income for the self-employed and for farmers; her views on whether current income is not being accepted by some inspectors; and if she will make a statement on the matter. [1525/10]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Jobseeker's allowance and farm assist are means tested payments. In each case, social welfare inspectors interview claimants and make the inquiries necessary to ascertain their means. Historically, self-employed people were assessed on their income in the 12 months prior to claiming, and decisions were made on that basis. This has proved an effective measure of means during periods of relatively stable economic conditions. However, it has always been open to each applicant to make a case showing that his or her income in the coming 12 months was likely to be reduced in light of personal or economic circumstances. The Department's inspectors and deciding officers take account of such arguments and, in assessing means, exercise their best judgment as to the likely income such a person would receive in the 12 months following their claim.

In light of the changed economic environment, and recognising that the system of using past year earnings as a basis for assessing means was no longer as equitable as it had been, the Department issued a circular in May 2008 advising inspectors of the need to recognise that, in general, less work would be available in the current economic environment and, as a consequence, the income of a self-employed person may be reduced. A further circular, on self-employment process improvements, was issued in December 2009. It advised inspectors to deal efficiently and effectively with means tested cases that contain an element of self-employment. Inspectors were advised that each case should be examined on its merits and that they should apply their knowledge of local conditions to arrive at a fair assessment of the income from self-employment for the coming 12 months.

Some 88% of farm assist claims and 93% of self-employed claims that were decided on in the period between January and December 2009, inclusive, were awarded. If a self-employed person's situation changes after he or she has made an initial claim for jobseeker's allowance or farm assist, he or she can apply to have his or her means reviewed. In addition, if the individual is dissatisfied with the means assessed, it is open to him or her to make an appeal to the social welfare appeals office. I appreciate the need to ensure that claimants who have been self-employed, and whose income is significantly affected by the economic downturn, receive their full entitlements in a timely manner. I assure the House that we are doing our best to ensure that this is achieved.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I am sorry to have to raise this issue again. I brought a number of cases to the Minister's attention last year. For example, I spoke about a self-employed person who went out of business last August. His ten workers have received their entitlements, but he has not yet received a single penny.

Brendan Howlin (Wexford, Labour)
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A question please, Deputy.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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How can I ask a question without explaining what I am asking about?

Brendan Howlin (Wexford, Labour)
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The Deputy will know that one minute is allowed for supplementary questions.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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This situation has not yet been resolved. The man in question is living entirely on the basis of the support of his family. His wife has applied for carer's allowance. When I spoke to officials in the carer's allowance section of the Department, they said they would re-examine the case without reference to the appeals process. That did not happen, unfortunately. Both the man and his wife are without assistance. I am also familiar with the case of a young farmer-----

Brendan Howlin (Wexford, Labour)
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Go raibh maith agat.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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-----with €650 of farm assist-----

Brendan Howlin (Wexford, Labour)
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We do not have time to go through the Deputy's list of cases.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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He got farm assist all right. He got €650 for himself, his wife and his children. We asked the Department to get the inspector to re-examine the matter.

Brendan Howlin (Wexford, Labour)
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The Deputy cannot simply ignore the Chair.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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The inspector refused to do so. What is the Minister going to do about that?

Brendan Howlin (Wexford, Labour)
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Before the Minister replies, I ask the Deputy to have some regard for the Chair. The rules which exist for the asking of questions can be set aside if the House so decides but in the interim the Chair should be allowed to apply them.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Genuine issues arise in respect of self-employed people seeking unemployment assistance. We took these issues on board in recognising that the income a person earned over the preceding 12 months could not reflect what he or she could earn during the following year. This is why new circulars were issued to inspectors. Bearing in mind some of the concerns raised by Deputy Crawford on previous occasions, a substantial new circular issued to inspectors last month to ensure, for example, they did not take sole account of previous incomes. Accounts cannot be exclusively relied upon or considered in isolation from other factors. The circular tells inspectors precisely what they should look for and advises them to be cognisant of the fact that employment is unavailable. The projected net income for the succeeding 12 months should take account of the downturn and reflect diminishing trade on a proportionate basis. We are sending the message to our offices and inspectors that there is a cohort of self-employed people who may have earned a decent income 12 months ago but cannot at present expect similar remuneration.

The figures speak for themselves when I note that 88% of applications under farm assist were granted and that 93% of those who sought unemployment assistance were self-employed. I am aware the Deputy is interested in a particular case but the issues he has set out are not reflective of the success of the scheme overall.

Seymour Crawford (Cavan-Monaghan, Fine Gael)
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I assure the Minister that the example I have set out is only one of many. What efforts will be made by the Minister to ensure that inspectors follow her directions? It appears that a few people are ignoring them. Is it fair that somebody should have been waiting since early summer for a result?

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Inspectors have already received three circulars and they have also been brought together in a workshop so that the details of the scheme could be explained and their fair implementation ensured. We will continue to keep the matter under review.