Róisín Shortall (Dublin North West, Labour)
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Question 879: To ask the Minister for Social and Family Affairs if the responsibility to initiate inspections of employers for breaches of PRSI rules or social welfare fraud lies with inspectors of her Department or the Revenue Commissioners; the number of such inspections that have taken place in the past three years; and the outcome of these inspections in terms of breaches detected, prosecutions made, sums recovered and so on. [38934/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Department's Inspectorate, appointed under Section 250 of the Social Welfare (Consolidation) Act 2005 is responsible, inter alia, for ensuring that employers and self employed people comply with the Act in relation to Pay Related Social Insurance contributions. Employer compliance, in this regard, is monitored through inspections which include; detailed examinations of employers' records to ensure that correct PRSI payments are being made in respect of all employees. These officers 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. In addition to the general inspectorate, the Department has a Special Investigation Unit (SIU), comprising some 88 Inspectors working full-time to combat fraud and abuse, they also undertake employer inspections to ensure compliance with their PRSI obligations. In 1986 a Joint Inspection Unit (JIU), drawn from inspectors from both the SIU and the Revenue Commissioners was established. This co-ordinated approach, combining the powers of both agencies, monitors compliance with both the PRSI and taxation systems.

Details of the number of PRSI Inspections carried out in the past 3 years are:-

Where PRSI undercharges are confirmed, the Inspector sets out the PRSI arrears or underpayment in respect of each employee for each tax year and issues 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 considered for prosecution. Equally, if other offences are detected in the course of an Inspection, for example failing to record employees, understating of earnings etc, the case may be considered for prosecution even where the employer makes full restitution.

The number and type of employer cases finalised in court for years 2006, 2007 and 2008 are shown in the tabular statement.

* Probation of Offenders Act

The Department is committed to ensuring that employers comply with their statutory obligations thereby ensuring that employees do not suffer delay in securing any social welfare entitlements and those contributions to the Social Insurance Fund are made in an accurate and timely manner.