Kate Walsh (Progressive Democrats)

I am happy to be able to contribute to this debate and I support Senator Mansergh's amendment to the motion. I welcome the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Killeen, to the House.

In 2004, a total of 259 people were prosecuted for social welfare fraud amounting to €1 million, an average of almost €4,000 per offender. That is a large sum of money, especially when one considers that an adult's allowance for a full year is €5,000. The Labour Party should consider that only 13% of the offenders who defrauded the State of almost a full year's allowance were sentenced to jail.

This year the Government will spend over €12 billion on social welfare support. That is double the amount spent four years ago. That €12 billion represents €1 for every €3 of the taxpayer's money spent directly on welfare support. The taxpayer contributes a large amount of money to people and families whom our society believe need help. That is one good thing.

At the same time, taxpayers deserve to have their hard-earned money spent wisely. The other House is debating this topic tonight. Social welfare fraud should be called stealing taxpayers' money. Families across the country need this money.

The Labour motion implies, maybe unintentionally, either we are too hard on social welfare fraud or not hard enough on tax offenders. Neither of these implications is true. Tax fraud is an example of stealing taxpayers' money and should not be treated any differently from social welfare fraud. For example, the Labour Party motion makes no reference to the €1.5 billion in back taxes, interest and penalties received following investigation into bogus non-resident and offshore accounts. That omission is a pity.

We put every effort into catching tax dodgers. In January of this year the Government announced amendments to the Finance Bill 2005. These amendments extended the powers of the Revenue Commissioners to pursue prosecutions against persons who engage in, or facilitate, tax evasion. In April 2004 Frank Daly, the chairman of the Revenue Commissioners, said that tax evasion damages our country and is equivalent to robbing one's neighbour.

As the saying goes, "the only stable state is that in which all men are equal before the law". Social welfare and tax fraud are examples of people robbing their neighbours. People who commit either crime should be pursued and treated equally. As legislators we must not move too close to instructing the legal system on how to do its job. That would be dangerous for democracy.