Dáil Éireann debate -
Thursday, 13 Dec 2001

Vol. 546 No. 5

Written Answers. - Redundancy Payments.

Ned O'Keeffe

Question:

63 Mr. N. O'Keeffe asked the Tánaiste and Minister for Enterprise, Trade and Employment when severance or redundancy will be paid to the workers who became redundant due to the closure of a company (details supplied); and if her attention has been drawn to the dissatisfaction amongst these people. [32169/01]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I am aware that many of the workers in Irish Ispat Limited had given several years of service and dedication to the company and it was with dismay that the Government learned of the situation in which the workers found themselves following the closure of the company in June of this year.

In addition to administering the schemes for the workers' statutory redundancy entitlements, details of which are outlined below, my Department applied to the European Commission for re-adaptation aid under Article 56(2)(B) of the European Coal and Steel Community – ECSC – Treaty for the provision of funds to enhance the statutory entitlements of the workers. The Commission has recently approved my Department's application for the maximum aid amount of 3,000 or £2,362.69 per worker. The Commission's payment will only apply to workers who have more than one year's service in the company and who also would not have reached normal pensionable age at the time of being made redundant. The Commission has indicated that it should be in a position to transfer these funds during the first few months of 2002. The payment will then be administered by my Department.

One of the conditions for receipt of this funding from the European Commission is that the Government should pay a special contribution to the workers which would at least match the funding to be received from the Commission. This special Government contribution of £2,362.69 or 3,000 per worker is in the process of being paid to the former employees and should be received by them within the next few days. The special Government contribution will apply to all the Ispat workers who were made redundant as a result of the closure of the company whereas the European Commission payment is subject to the criteria described above.

My Department has paid statutory redundancy payments of a total amount of just over £1.5 mill ion to 343 of the former Irish Ispat employees from the social insurance fund under the Redundancy Payments Acts, 1967 to 1991. A further 47 claims were received in respect of employees who did not meet the required minimum service of two years. These claims were refused and the employees were informed accordingly. In addition, a few more claims have yet to be processed for employees whose services were retained by the liquidator for an extended period. As soon as my Department is informed of the applicable adjusted dates of termination, their claims will be processed. My Department has also processed all claims received from the former employees in respect of wages arrears and holiday pay claims under the insolvency payments scheme in accordance with the Protection of Employees (Employers' Insolvency) Acts, 1984 to 1991. Moneys in respect of these claims have issued to the liquidator for distribution to the former employees.

With regard to payments of minimum notice compensation awards in accordance with the Minimum Notice and Terms of Employment Acts, 1973 to 1991, my Department has forwarded the payments awarded by an employment appeals tribunal, within the terms of the insolvency payments scheme, to the liquidator for distribution of the appropriate amount to each individual claimant. I understand that some further claims under the insolvency payments scheme remain to be heard by the tribunal. I have been assured that any further claims received under the scheme will be processed as quickly as possible. To date, the total gross amount paid under the insolvency payments scheme is over £1.19 million.