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Fraud rife in service-cheque businesses

Service-cheques were introduced in 2004 to help provide jobs for unskilled workers and to tackle the black economy. The government subsidises the cheques: €7.50 buys a cheque which pays for one hour of work such as cleaning, ironing, cooking and shopping at a rate of €20.80.

Numerous companies have sprung up to act as intermediaries, providing service workers while taking a percentage of the value. In 2006 there were 1,438 such, including big-name temping agencies like Randstad. By 2009 there were 2,340, with income in the first half of the year from nearly 38 million cheques.

Federgon has now asked the government to take measures to eradicate the "rotten apples" from the sector.

(August 4, 2009)