Prosecutions follow Border fraud crackdown

A CRACKDOWN on cross-Border fraud has resulted in prosecutions being initiated for social welfare abuse, breaches of excise duty, and infringements of the Road Traffic Acts.

The crackdown was initiated by special investigators attached to the Department of Social and Family Affairs to combat what the Minister, Mary Hanafin, described as “welfare tourism”.

Ms Hanafin’s department said social welfare payments in the Republic could be more then three times the equivalent payments in Northern Ireland. In just two days the special welfare investigators stopped and questioned the drivers of 53 cars and are taking follow-up action including prosecutions in 22 of these cases.

The social welfare investigators were joined at checkpoints by gardaí and Revenue personnel, who also questioned motorists and their passengers.

A Revenue spokesman said 12 cars were seized over two days with follow-up action being initiated in a further 24 cases, as well as action being taken for breaches of excise duty relating to the use of marked diesel oil.

A Garda spokesman said prosecutions would be initiated for infringements of the regulations relating to insurance and licence, tax and other elements of the Road Traffic Act.

More frequent checkpoints are planned in the coming weeks along the Border counties.

The issue of cross-Border fraud was raised at a recent meeting of the the North-South Ministerial Council and co-operation agreed between agencies on both sides of the Border. It is believed the problem is much greater in the South, because of the higher rates of social welfare.

Part of the disparity is due to the decline in value of sterling, but examples cited by the Department of Social and Family Affairs include a job seekers allowance for the under 25s which in Northern Ireland amounts to €59.90, compared to €204 in the Republic.

A married couple in Northern Ireland would be allowed €106.70, while the equivalent allowance in the South is €339.90.

The Department of Social and Family Affairs also released details of recent increases in the numbers signing up for welfare in the Border counties. Between January 2008 and 2009 there were increases in all areas and numbers more than doubled in Ballyconnell, Co Cavan, where the increase was 110 per cent; in Ballybofey, Co Donegal where the increase was 123 per cent; Clones, Co Monaghan where the increase was 112 per cent and Monaghan town where it was 120 per cent. As a general rule, the increases were less further from the Border.

Ms Hanafin said: “We cannot allow our system to be abused when people right across the country, who have paid social insurance, are now losing their jobs and are seeing their incomes drop significantly.”