Vol. 538 No. 4
69 Mr. Allen asked the Minister for Public Enterprise if the staff of the Irish refinery will receive compensation or shares arising from the sale of the refinery; and the consideration which is being given to the retired staff of the refinery. [18259/01]
A condition of completion of the proposed disposal of the Irish National Petroleum Corporation's business and principal commercial assets to the Tosco Corporation is the establishment of an employee share ownership programme – ESOP. The intention is to enable the employees to hold shares in their employer. Following a series of meetings between representatives of the trades unions and senior officials of my Department and the Department of Finance, the trades unions agreed to recommend a particular offer to their members. I understand that agreement has since been reached between INPC management and trades union representatives as to how the proposed ESOP should be implemented, and that the offer has been sent for a ballot.
Having regard to the legal provisions in respect of ESOPs generally, and given that, in line with normal practice, the purpose of the proposed ESOP in this instance is to provide an incentive to current employees and to ensure their co-operation and assistance in bringing the proposed disposal to a successful conclusion, it is not envisaged that those who are not employees of the INPC at the time of completion will be covered by the proposed ESOP. INPC pensioners will continue to receive benefits in respect of their former service with the company in the form of their pension entitlements, as the existing pension schemes, which I understand from the company are fully funded, will transfer to the new owner on completion of the proposed transaction.
