Seanad debates

Wednesday, 5 October 2005

6:00 pm

Photo of Maurice CumminsMaurice Cummins (Fine Gael)

I fully support this self-explanatory motion. There is no doubt that the State has come down heavily on social welfare fraud in the last number of years. It is right that it should do so. Between them, the 259 people brought before the courts for welfare fraud fiddled more than €1 million, an average of €70 per week per person. Of this number, 36 were imprisoned. I have no problem with that. However, if one agrees that social welfare fraud should be eliminated, one must also agree that fraud should be stamped out in all other areas.

The Comptroller and Auditor General found that no less than €173 million in tax was written off because it was considered too difficult to collect it from the fraudsters who had fiddled the State through non-payment of VAT, PAYE and so on. How many of these fraudsters were jailed? Certainly fewer than the 36 who were imprisoned for social welfare fraud. The message this conveys to the public is that it is advisable to evade tax, salt the money away or, better still, use it to cut prices so that competitors can be driven out of business and one's own prices can ultimately be raised. The chances of getting caught are small enough to make crime pay for these people.

Enjoying only meagre resources, the Revenue faces legions of companies subcontracting to other firms which in turn subcontract again to smaller operators. If the Revenue catches up with a person who is evading tax at this stage, he or she can pay what is due and that will be the end of it. This is not the case for those found guilty of social welfare fraud. Senator Mansergh has said it is better to name and shame people and recover the moneys owed to the State. I agree this is fair. However, why is the same process not open to the those who engage in social welfare fraud? Instead of imprisoning them, can the moneys overpaid to such persons not be recovered through a weekly deduction from their social welfare payment? Everybody must be treated equally under the system.

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