Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Question 120: To ask the Minister for Social Protection in view of some commentary that some self-employed tradesmen may be claiming social welfare payments, the analysis that has taken place in relation to such commentary; if any pilot analysis has been examined covering any suburban or geographic area; if there is an ongoing analysis to ensure that persons working in this State from outside the jurisdiction are meeting with all the insurance contributions/taxation requirements; if she will outline the income a person is permitted to earn on a part-time basis while still claiming social welfare; and if she will make a statement on the matter. [2798/12]

Joan Burton (Dublin West, Labour)
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Self-employed people can apply for the means-tested Jobseeker's Allowance if their business ceases or if they are on low income as a result of a downturn in demand for their services.

Legislation provides for the assessment of all income in cash and any non-cash benefits which the person or his/her spouse may reasonably expect to receive during the succeeding year. The means assessment guidelines state that where the income in the coming 12 months is not ascertainable, then the income for the last 12 months should be taken as a guide, allowing for any variable factors.

The means assessment for self-employment income varies across the Department's schemes. However, in general, where a person's means are in excess of the family rate applicable to the scheme, the payment is disallowed. For example, the family rate payable for a Jobseeker's Allowance claimant aged 25 or over with a partner and one child is €342.60, comprising the personal rate and increases for both a qualified adult and child.

Combating social welfare fraud and abuse is an integral part of my Department's day-to-day work and this includes ensuring that persons working in this State from outside the jurisdiction comply with all the relevant insurance contributions/taxation requirements.

The emphasis of the Department's control activities is on direct intervention and engagement. High visibility operations by the Special Investigation Unit are regularly and systematically undertaken. The effectiveness and cost-benefit of these operations and projects are continuously analysed and operational experience critically informs whether to continue, escalate or terminate specific projects. New control projects will be developed and introduced, where appropriate.

In the context of self-employed trades people who may be engaged in social welfare fraud, specific activities being undertaken include:

§ the active policing of the hidden economy sector where there is a prevalence of social welfare and abuse. Investigations in this context are undertaken through Joint Investigation Units with the Revenue Commissioners;

§ where intelligence or reliable reports are received about persons engaged in concurrent working and claiming, or under declaration of income, reviews of eligibility are immediately undertaken;

§ a series of high visibility site visits and employer inspections are systematically conducted to detect incidences of social welfare fraud. These visits and inspections are undertaken in those sectors where the risk of fraud is most prevalent;

§ multi-agency checkpoints are undertaken with the Garda Traffic Unit and the Revenue Commissioners. Persons driving commercially taxed vehicles are interviewed as part of these projects; and

§ a number of high visibility operations are being jointly conducted by Special Investigation Unit and local authority environmental officers to identify environmental offences and simultaneously detect incidences of social welfare fraud.

As Minister, I am very conscious of the need to protect public money and I am determined to ensure that abuse of the system is prevented and is dealt with effectively when detected.

Mattie McGrath (Tipperary South, Independent)
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Question 121: To ask the Minister for Social Protection her views on the fact that a family of five have been left without any income whatsoever because a second property has been assessed as means against them and have subsequently been refused a social welfare payment; what she proposes this family does to put food on their table when both parents are unemployed and without any source of income; her plans to review the assessment of capital as means when no income is being derived from the capital; and if she will make a statement on the matter. [2801/12]

Joan Burton (Dublin West, Labour)
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Social welfare legislation provides that the yearly value of "property owned but not personally used or enjoyed" is assessable for means testing purposes. Such property includes houses and premises owned by a claimant which may or may not be put to commercial use. However, it does not include property such as the home or, for example, a premises used by the claimant in carrying out a business.

For assessment purposes, the current market value of the property is established as well as the amount of any outstanding mortgages on that property. The balance (market value less outstanding mortgage) is assessed by reference to a formula. Where the current market value is less than the outstanding mortgage, no assessment is made. Any changes to the current arrangements would have to be considered in a Budgetary context.

The current market value of a property is the best estimate of what would be achievable if the property was offered for sale. Such an estimate will have regard to reductions in prices over recent years.

In establishing the current market value of a property, the Department may make enquiry of the State Valuation Office. The market value may also be established through receipt

of a reasonable current valuation from a registered auctioneer, with reference to the purchase price and date of purchase of the property or, alternatively, the Department's inspector may agree a valuation with a customer having regard to the type and location of the individual property and prevailing market values in that area.

Where a claimant considers that a decision on his or her claim is based on a market value of a property which is too high, he or she may appeal that decision to the Social Welfare Appeals Office.

Finally, where a person is unable to meet essential costs from his or her own resources despite owning a substantial capital asset, an exceptional needs payment may be payable under the supplementary welfare allowance (SWA) scheme, and the affected person can, if they wish, contact the Department locally in this regard. Each application is determined by the person administering the SWA Scheme in the local area, based on the particular circumstances of the case.