Ruairi Quinn (Dublin South East, Labour)
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Question 115: To ask the Minister for Social and Family Affairs the number of personnel devoted to the enforcement of the law requiring employers to make PRSI contributions; the level of activity of his Department in this area; and if he will make a statement on the matter. [26264/07]

Martin Cullen (Waterford, Fianna Fail)
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Contributions due to the Social Insurance Fund are collected in the main by the Revenue Commissioners, together with income tax due. My Department's Inspectorate, appointed under Section 250 of the Social Welfare (Consolidation) Act 2005 is responsible, inter alia, for ensuring that employers and the self employed comply with the Act in relation to Pay Related Social Insurance contributions. Employer compliance in this regard is monitored by Inspectors conducting employer inspections whose remit includes a detailed examination of employers' records to ensure that correct PRSI payments are being made in respect of all their employees. In addition, any irregularity in a customer's PRSI record either detected at claim processing stage or reported directly by the customer, is referred to the Inspectorate for follow up action.

My Department currently employs 380 Social Welfare Inspectors throughout the country. The duties of a Social Welfare Inspector are wide ranging. They include the investigation of eligibility to a broad variety of means tested schemes, as well as enforcing the law in relation to employers' responsibilities in regard to PRSI matters. Social Welfare Inspectors are also engaged in specialist control work. It is not possible to give an exact figure on the number of personnel devoted to the enforcement of the law requiring employers to make PRSI contributions as there are no social welfare inspectors devoted exclusively to this work.

Employer inspections, carried out by the Department's Inspectors, comprise a number of tasks:

detailed examination of employer records to ensure that accurate records of employees are being maintained and that correct PRSI payments are being made in respect of all their employees and that the correct PRSI class is being applied;

checks to ensure that employees are not concurrently working and claiming social welfare payments;

outlining employers responsibilities with regard to Social Welfare legislation and where Revenue staff are part of the inspection team, tax legislation;

general advice and information to employers on matters such as the operation of the PRSI system, incentives available to employers, the correct classes of contributions, employees' entitlements etc.

Where PRSI undercharges are confirmed, the Inspector will set out PRSI arrears/underpayment in respect of each employee for each tax year and issue a demand to the employer for payment. Should the employer fail to respond satisfactorily, a statutory demand will issue by registered post and the employer given 14 days to respond. If the employer fails to respond the case is prepared for consideration of prosecution.

In the absence of wage records, an employee statement (Form IN12) detailing evidence of employment and payment of earnings is obtained. Based on confirmation of employment, either by way of wage inspection or employee statement, my Department's Central Records Unit is advised to update the employee's PRSI record for the period of employment in question. Where a benefit claim is pending the relevant Local Office/Section is similarly advised.

The number of employer inspections undertaken to date this year is 3,475.

My Department is committed to delivering an effective and efficient regime of employer inspections, and ensuring that PRSI deductions and remittances are made in an accurate and timely manner.

Charles Flanagan (Laois-Offaly, Fine Gael)
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Question 116: To ask the Minister for Social and Family Affairs the action he proposes to take in respect of the recommendation of the Irish Human Rights Commission that those elderly persons who contributed to the social insurance scheme as self-employed persons expecting on retirement to receive an old age contributory pension but who were denied this benefit due to the fact that they did not satisfy the minimum period of contributions by reason only of their advanced age when the relevant legislative provisions came into force be afforded a reduced benefit; and if he will make a statement on the matter. [24835/07]

Martin Cullen (Waterford, Fianna Fail)
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It is a fundamental principle of our social insurance system that those qualifying for benefits must satisfy a range of contribution and other conditions. In the case of contributory pensions this involves commencing payment of contributions 10 years before pension age, payment of a minimum number of contributions at an appropriate rate and reaching a minimum average annual contribution rate. The state pension (contributory) is a valuable benefit and the conditions are designed to ensure that those qualifying have had a sufficient and ongoing attachment to the social insurance system.

The case reported on by the Irish Human Rights Commission (IHRC) involves a couple who were over 56 years of age in 1988 when compulsory social insurance for the self-employed was introduced. Accordingly, they were unable to satisfy one of the basic requirements for pension as they did not commence paying insurance 10 years before pension age.

In 1999 a special half-rate pension was introduced for this group based on the payment of 260 contributions and, again, the couple involved did not satisfy the qualifying condition. While one of the couple could have qualified had they paid the necessary contributions, because of advanced age the other person would not have been able to contribute the necessary level of contributions before reaching pension age. A refund of part of the social insurance contributions was available to such people.

Having considered the case, the IHRC has recommended that a reduced benefit should be paid to people who, because of advanced age, could not satisfy the conditions for the special pension introduced in 1999. The recommendations of the IHRC are based on its assessment of the situation under the European Convention on Human Rights, the International Covenant on Civil and Political Rights and the European Code of Social Security. In relation to the European Code of Social Security, the IHRC places particular emphasis on provisions in relation to the position of people, who by reason of age when provisions are introduced, cannot satisfy contribution or employment conditions.

The Department makes annual reports on compliance with this Code to the Council of Europe, summarising changes to the social welfare system. These reports are then referred to the International Labour Organisation (ILO) Committee of Experts for their examination. The Department's 1999 report included details of the self-employed provisions which are now the subject of the Irish Human Rights Commission (IHRC) investigation. At that time, the ILO Committee confirmed that Ireland met its obligations.

Accordingly, as an initial step in its review of the IHRC report, my Department has asked the ILO Committee of Experts for its views on the way in which the IHRC has interpreted the relevant articles. While the Department has received an informal opinion which is at variance with the conclusions of the IHRC, it has asked the Committee of Experts for a formal review of the situation in the context of our annual report on compliance with the European Code of Social Security which my Department submitted recently. The annual report has drawn specific attention to the IHRC report and the manner in which it interprets our obligations under Article 29.5 of the Code.

The views of the supervising committees have been sought on the conclusions of the IHRC report and as soon as these are received the position will be reviewed. My Department is anxious to finalise this matter and will press for an early response from the supervising committee.