David Stanton (Cork East, Fine Gael)
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Question 378: To ask the Minister for Social and Family Affairs the way in which inspectors from his Department in pursuit of defaulters work with the Revenue Commissioners; and if he will make a statement on the matter. [23536/05]

Séamus Brennan (Dublin South, Fianna Fail)
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Social welfare inspectors appointed under section 212 of the Social Welfare (Consolidation) Act, 1998 are responsible, inter alia, for ensuring that employers and the self employed comply with the legal requirements regarding pay related social insurance, PRSI, contributions. In 1990, joint inspection units — JIU — comprising personnel from both the Department of Social and Family Affairs, DSFA, and Revenue Commissioners inspectorates were established countrywide to combat social welfare fraud and tax evasion. These units work together to identify employers who are not complying with the PAYE/PRSI regulations and who are abusing social welfare schemes.

A service level agreement between this Department and the office of the Revenue Commissioners defines the administrative and operational arrangements of these units. This joint co-operation, drawing as it does on the expertise and experience of those involved in planning and conducting joint projects, has been beneficial in the detection of non-compliance and the collection of outstanding PRSI liabilities arising. In addition, the use of both social welfare and revenue legislation has been effective in this regard.

As a result of the ongoing employer inspection programme, carried out by the JIU and the general social welfare inspectorate, arrears of PRSI/PAYE, totalling €3.86 million and €3.82 million were recovered in respect of the years 2003 and 2004, respectively. Furthermore, to assist inspectors in carrying out this employer inspection programme and to enhance its effectiveness, non-compliant employers are targeted in a number of ways. Arising from the ongoing liaison and co-operation between my Department and the Revenue Commissioners, appropriate data are obtained from the Revenue Commissioners which identifies those employers who are failing to meet their legal obligations with regard to the PRSI scheme. Section 222 of the Social Welfare Consolidation Act 1998 provides for the sharing of data between my Department and the Revenue Commissioners.

Such information is issued to the nationwide network of inspectors for follow up action. This involves inspectors conducting wage inspections with a view to regularising the PRSI position and, where appropriate, assessing and collecting outstanding PRSI liabilities.