CIF Black Economy Survey 2012

Q1) When did you last come across a black economy operation?
Answer Options
Response Percent
a) In the last 3 months
76.1%
b) In the last year
13.4%
c) In the last 3 years
6.7%
d) More than 3 years ago
3.0%
e) Never
3.0%
Q2) Have you come across an increased number of black economy operations in the last 12 months?
Answer Options
Response Percent
a) Yes
85.2%
b) No
8.1%
c) Don’t know
6.7%
Q3) Has the number of black economy operations you have come across increased since the downturn began in 2008?
Answer Options
Response Percent
a) Yes
90.4%
b) No
3.0%
c) Don’t know
6.7%
Q4) If you answered Yes to the previous question, how much would you estimate the black economy activity has increased since the downturn began?
Answer Options
Response Percent
a) 0 – 10%
0.0%
b) 11 – 25%
11.5%
c) 26 – 50%
23.8%
d) 51 – 70%
23.0%
e) 71 – 85%
11.5%
f) 86 – 100%
10.7%
g) 101%+
19.7%
Q5) How many jobs do you think you have lost out to black economy operations in the last 12 months?
Answer Options
Response Percent
a) 1 – 5
39.8%
b) 6 – 10
20.3%
c) 11 – 15
14.1%
d) 16 – 20
10.9%
e) 21+
7.0%
f) None
9.4%
Q6) If you have lost out on work to a black economy operator what do you think the main reason was?*
Answer Options
Response Percent
a) The black economy operator submitted a cheaper tender
96.0%
b) The black economy operator has a strong reputation
1.6%
c) The black economy operator has a good relationship with the client
4.8%
d) The black economy operator is well known in the area
6.4%
e) Other
3.2%
Q7) Are you aware of any public contracts being awarded to black economy operations?
Answer Options
Response Percent
a) Yes
24.1%
b) No
48.1%
c) Don’t know
28.6%
Q8) In your impression, to what extent do black economy operators pay their workers with cash outside of the tax system?
Answer Options
Response Percent
a) Always
35.1%
b) Regularly
56.5%
c) Occasionally
6.9%
d) Never
1.5%
Q9) To what extent do wage rates paid by black economy operators undercut legitimate firms?
Answer Options
Response Percent
a) They offer the same wage rates
1.5%
b) 0 – 5%
1.5%
c) 6 – 10%
12.2%
d) 11 – 20%
19.1%
e) 20%+
65.6%
Q10) Have you come across any clients who have experienced problems with black economy operators or the work they have carried out?
Answer Options
Response Percent
a) Yes
49.2%
b) No
27.3%
c) Don’t know
23.5%
Q11) Have you ever been asked to repair the work done by a black economy operator?
Answer Options
Response Percent
a) Yes
39.1%
b) No
46.6%
c) Don’t know
14.3%
Q12) In your experience are the materials used by black economy operators on projects –
Answer Options
Response Percent
a) Better in quality
0.0%
b) Lower in quality
55.8%
c) Of the same quality
44.2%
Q13) In your experience are black economy operators more or less productive in delivering projects than registered operators?
Answer Options
Response Percent
a) More
9.2%
b) Less
43.5%
c) Don’t know
47.3%
Q14) Do you believe the Government needs to take stronger action to regulate black economy operators in the construction industry?
Answer Options
Response Percent
a) Yes
93.3%
b) No
2.2%
c) Don’t know
4.4%
Q15) Do you think there is a need for stricter regulations to ensure black economy operations do not participate in public contracts?
Answer Options
Response Percent
a) Yes
80.2%
b) No
7.6%
c) Don’t know
12.2%
Q16) Do you think black economy participation in public projects could be reduced if better enforcement was in place?
Answer Options
Response Percent
a) Yes
84.0%
b) No
2.3%
c) Don’t know
13.7%
Q17) Has your business had any dealings with NERA in the past year?
Answer Options
Response Percent
a) Yes
13.6%
b) No
86.4%
Q18) Do you think that NERA should be doing more to stop black economy activity?
Answer Options
Response Percent
a) Yes
67.7%
b) No
9.0%
c) Don’t know
23.3%
Q19) Who should be responsible for ensuring regulations to combat the black economy are enforced?*
Answer Options
Response Percent
a) Revenue Commissioners
74.4%
b) NERA (National Employment Rights Authority)
32.3%
c) Clients
43.6%
d) Unions
19.5%
e) CIF
29.3%
Q20) Do you think lower wage rates in the construction industry would reduce the level of black economy operations securing work?
Answer Options
Response Percent
a) Yes
66.2%
b) No
25.6%
c) Don’t know
8.3%

Methodology
The following survey was conducted among CIF member companies in early July 2012. CIF members were emailed the survey and asked to provide a response to the questions posed.
For the majority of questions respondents were asked to tick the option that best applied to their experience of the black economy. However in a few cases respondents were given the option of ticking more than one option.
A total of 408 respondents completed the survey.