David Stanton (Cork East, Fine Gael)
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Question 466: To ask the Minister for Social and Family Affairs the cost of his Department's investigation into welfare fraud in 2004 and 2005; the number of staff involved in the investigation; the number of hours these staff spent investigating cases and the cost of same in 2004 and 2005; the number of people investigated and the number of people prosecuted; the total amount recouped by his Department from successful prosecutions; the expected cost to his Department of investigations into social welfare fraud in 2006; and if he will make a statement on the matter. [10621/06]

Séamus Brennan (Dublin South, Fianna Fail)
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The detection of fraud and abuse of the social welfare system is an integral part of the day to day work of my Department. In this regard all staff engaged in claims processing are concerned with preventing and detecting fraud and abuse.

Controls are exercised at both the initial claim stage and at subsequent stages during the claim life-cycle. Claims are reviewed on a regular and targeted basis. However, the frequency with which reviews are carried out varies depending on the payment scheme and the individual's personal circumstances.

For example means tested payments are reviewed at certain intervals or when there are indications that changes in circumstances have not been reported to the Department. Those in receipt of illness payments are called for a medical examination by the Department's medical assessors, at a frequency related to their illness or incapacity or at a time recommended by a medical assessor.

Customers in receipt of unemployment payments are also checked on an ongoing basis to verify continued compliance with the requirements of being available for and genuinely seeking employment.

Some 600 of my Department's staff at local, regional and national level are engaged on a full or part-time basis on work related to the control of fraud and abuse of the social welfare system. About half of these work full-time on control work, while the other half are responsible for routine investigations under the various schemes and for following up cases of suspected fraud where these are discovered. It is estimated that some 60% of the work of general inspectors is on control activity, including claim reviews. The remaining 40% would be devoted to new claim activity — this can also be regarded as within the broad framework of control.

A special investigation unit, comprising about 80 staff spread throughout the country is involved in work which is specifically related to the investigation of employers and employees where fraud and abuse is suspected. These officers, some of whom work jointly with inspectors from the Revenue Commissioners, carry out inspections of employers in relation to their PRSI obligations as well as investigating cases where fraud or abuses of the schemes are suspected.

Some 312,000 and 324,000 reviews of entitlements were carried out by my Department's staff in 2004 and 2005 respectively. In that period the records of some 12,300 employers were inspected to ensure compliance with the Department's regulations and, in particular, to prevent and detect abuses of the system. In the years 2004 and 2005, control savings of €386 million and €406 million respectively were achieved. In so far as costs are concerned the estimated salary costs in 2004 were in the region of €20.4 million and an additional €1.25 million was spent on travel, subsistence and overtime. The corresponding figures for 2005 are estimated at €21 million and €1.2 million respectively.

Some 284 and 271 cases were finalised in the courts in 2004 and 2005 respectively. A total of 291 individuals were fined, 160 in 2004 and 131 in 2005. Fines totalling €140,819 were imposed by the courts in respect of these cases. Recoveries on overpayments amounted to €19.7 million in 2004 and €20.2 million in 2005, however statistics are not maintained in such as manner that they can be attributed to specific cases or individuals.

I am committed to ensuring that social welfare payments are available to those who are entitled to them and that they are delivered in an effective and efficient way. I am also determined to ensure that abuse of the system is prevented and is dealt with effectively when detected and I will take whatever steps are necessary to achieve this.