Vol. 530 No. 4
80 Mr. Bell asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will increase the statutory ceiling on a weekly wage with respect to statutory redundancy; if so, the amount of the intended increase; and if she will make a statement on the matter. [4173/01]
The ceiling on pay, which applies to the calculation of benefit under the Redundancy Payments Acts, was first introduced in 1974 by means of the Redundancy Payments (Weekly Payments and Lump Sum) Order, 1974 (S.I. No. 82 of 1974). This set the ceiling at £2,500 per annum. The Redundancy Payments Act, 1979, raised this ceiling to £5,000 per annum and provided for its variation by regulation. When so doing, account had to be taken of average earnings in the transportable goods industries as recorded by the Central Statistics Office.
The relationship between the ceiling and the average earnings of this class of worker was established because, historically, this group have been the highest paid on average in industry. However, while the statutes do not impose a legal obligation on me to change the benefit ceiling, there is clearly an expectation that the ceiling would be raised in relation to average earnings. The benefit ceiling was last raised in May 1994 from £13,000 per annum, that is, £250 per week, to its current level of £15,600 per annum, £300 per week.
I wish to assure the Deputy that the drafting of regulations to raise the ceiling to £20,800 per annum, that is, £400 per week, is at an advanced stage in my Department.
