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Dáil Éireann debate -
Tuesday, 18 Feb 1975

Vol. 278 No. 4

Ceisteanna-Questions. Oral Answers. - Redundancy Fund Payments.

24.

asked the Minister for Labour (a) the number of redundancies in each of the years 1971, 1972, 1973 and 1974 (b) the amount paid from the redundancy fund in each of those years (c) the level of the redundancy fund at present and (d) whether he is satisfied that the redundancy fund is sufficient to meet the present and future needs.

The number of qualified redundancies notified by employers to my Department was:

1971

—8,556

1972

—10,159

1973

—7,504

1974

—11,202

The figures for the various years are not directly comparable with each other. For example, with effect from September, 1971, the minimum qualifying employment period for a redundancy payment was reduced from four to two years. In April, 1974, the redundancy scheme was further improved by the inclusion of non-manual workers earning over £1,600 per annum.

I am at present examining the state of the redundancy fund in relation to present and future needs.

During the years in question, expenditure from the redundancy fund was as follows:—

1971

—1,708,261

1972

—2,856,022

1973

—2,902,451

1974

—3,348,000 (estimated)

The figures of expenditure reflect improvements which were effected in the redundancy scheme both in 1971 and 1974. In 1974 the improvements included the extension of duration of weekly payments to workers over 51 years of age and the raising to 100 per cent of pre-redundancy pay of the limit of the total of weekly redundancy payment plus social welfare benefits.

There was one part of the question to which the Minister did not reply. I refer to the present level of the redundancy fund. Would the Minister give us that figure?

It is an estimated figure. There is a bit of a lag in the state of the fund at any given time. I have to consider the possible draws on the fund in the current year and that is why I do not have an exact figure.

Could the Minister give us an estimate?

There are difficulties in giving an estimate because it would not be absolutely accurate.

What is the anticipated life of the fund at its present level in view of the record demands on the fund over the past two years?

As I indicated, there has been an improvement in the kind of benefits allowable for older workers and in the terms of the weekly payments. The present calls on the fund are, of course, rather heavy and it would be difficult therefore to give a forecast of the credit-worthiness of the fund.

Would the Minister feel any concern about its adequacy?

If the fund is not adequate we can always come to an arrangement here in the Oireachtas.

Does the Minister expect we will have to do that in the near future?

It is obvious there are heavy demands on the fund and we will have to come to conclusions as to whether the fund will be able to bear the calls made on it. It is too early to state what arrangements will be made.

How soon does the Minister expect these arrangements may have to be made?

I would expect over the next few months.

25.

asked the Minister for Labour why a person (name supplied) in County Waterford has not been paid redundancy money which has been due to him for some time.

The responsibility for the payment of the redundancy lump sum rests on the employer.

The files of the Department contain a receipt for the lump sum signed by the person referred to in the Deputy's question.

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