Dáil Éireann debate -
Wednesday, 6 May 1992

Vol. 419 No. 2

Ceisteanna—Questions. Oral Answers. - Social Welfare Benefit Regulations.

Michael Bell

Question:

5 Mr. Bell asked the Minister for Social Welfare when he intends to introduce regulations to withdraw social welfare benefit for nine weeks to workers who are declared redundant; if the nine weeks penalty will apply to both unemployment and disability benefit; the level of redundancy payments which will invoke the nine weeks penalty; whether women due maternity benefits, and who go redundant before they go on benefit will be included in the nine weeks penalty; and if he will make a statement on the matter.

Michael Bell

Question:

87 Mr. Bell asked the Minister for Social Welfare if the nine weeks penalty envisaged in the Social Welfare Act, 1992 will be applied to workers in the public services who opt for the Government's own voluntary retirement scheme; and if he will make a statement on the matter.

Mr. McCreevy

I propose to take Question Nos. 5 and 87 together.

Section 31 of this year's Social Welfare Act increases from 6 weeks to 9 weeks the disqualification period for receipt of unemployment benefit which applies in certain circumstances and provides that the claimant's overall entitlement to unemployment benefit will be reduced by the period of the disqualification. This measure came into effect on 6 April 1992.

Since 1986 the nine weeks penalty clause has applied in the case of claimants for disability benefit in certain circumstances. For example, the penalty is imposed where the person renders himself incapable of work through his own misconduct or does not make himself available for medical examination when requested.

The recent legislative change will also affect persons under the age of 55 years who receive a severance payment in excess of a fixed amount. The level of severance payment will be specified in regulations which I will be making shortly following consultation with the social partners.

A person intending to claim maternity benefit but who, in the meantime, is made redundant will also be affected by the nine weeks' disallowance subject to the severance payment being in excess of the prescribed amount. Maternity benefit will not be payable in such cases as the person was redundant at the time of the claim. However, the person may be eligible for receipt of unemployment benefit at the termination of the nine weeks' period of disallowance.

Public service workers who are insured at the modified rate of PRSI are not covered for unemployment benefit and are not, therefore, affected by the new arrangements.

Mr. Bell

In view of the uncertainty surrounding the manner in which these decisions will be taken, can the Minister say whether or not the level of earnings will apply to the statutory amount of redundancy payment plus negotiated settlements or additional payments negotiated by trade unions? That is most unclear at present and is holding up and interfering with negotiations pending in quite a number of areas between trade unionists and employers. Furthermore will he say whether the regulations issued on 6 April have been circulated to employment exchanges and their implications fully understood by the public, because I have no knowledge that people are so aware?

Mr. McCreevy

Deputy Bell has posed two separate questions. Regulations are not being made in regard to the amount of severance payment in the case of redundancy to which the provisions of this section will apply. I promised in the course of the debate on the Committee Stage of the Social Welfare Bill, 1992, to have discussions with the social partners. I will do so shortly and, thereafter, will fix a level above which these new rules will apply. There should not be any confusion at present regarding redundancy settlements, since the particular section of the Social Welfare Bill, 1992, merely refers to a severance payment above an amount to be prescribed; there is no ambiguity about it. For example, we did not enter into the area of statutory, negotiated or voluntary severance payments; the severance payment will be above a prescribed amount, call it what you will — severance, redundancy or whatever — but there will be no distinction drawn between them. I undertook at that stage to meet the social partners, which I shall do shortly, and will then fix the regulations, in which the relevant amount will be prescribed, so that the new regulations will apply from that date.

Mr. Bell

In view of the fact that the present disqualification of six weeks is being extended to nine weeks, taking into account the length of time it takes to have an appeal lodged and heard by an appeals officer, effectively that means somebody could wrongfully be deprived of benefit for several months after disqualification takes place. Will the Minister ensure that appeals are heard within that nine week period?

Mr. McCreevy

As the Deputy will be aware difficulties have been experienced over a long period about the speeding up of the hearing of appeals due to the volume of claims submitted to my Department. My Department are constantly endeavouring to speed up appeals in all areas. Certainly I will endeavour to ensure that people's cases are heard before the expiry of the nine weeks but the Deputy must remember that with the ever-growing volume of claimants in my Department that is not always possible.