Dáil Éireann debate -
Wednesday, 29 Jan 2003

Vol. 560 No. 1

Written Answers. - Job Losses.

Phil Hogan

Question:

187 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment the position in relation to the liquidation of IFI, and in particular all matters relating to redundancy and holiday payment claims and all ex-gratia payments which have been made to employees; and if she will make a statement on the matter. [1483/03]

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

The liquidation of IFI is ongoing and I understand that it could take two years or more to complete. At this stage, my Department has made payments of €2.67 million in respect of 322 claims received from former IFI workers in respect of entitlements under the Redundancy Payments Acts. A further 19 claims are being processed at present. In addition, under the insolvency payments scheme, €450,425 has been paid to the liquidator of the company mentioned in respect of claims for outstanding pay-related employee entitlements to wages and arrears of holiday pay on behalf of 323 employees. Claims in respect of a further eight employees received recently are currently being processed and a query has arisen in respect of one other claim.

With regard to minimum notice entitlements, before payment can be made under the insolvency payments scheme, entitlement must first be established by appeal to the Employment Appeals Tribunal. I understand that appeals have been lodged by 327 employees of the company. A date for the hearing has not yet been set. If the employees receive favourable decisions from the tribunal, they should complete Form EIP2 which will accompany the decision and forward this form to the liquidator, who will then forward the completed forms to my Department for processing and payment. I am not aware of the position as regards the workers based in Belfast but I expect that the relevant authorities there have also dealt with any claims received for statutory entitlements in an expeditious manner.

In addition to the position in relation to the statutory payments outlined, interim payments of €5,000 each have been made to most workers from theex-gratia trust fund of €24.5 million established by ICI and the State. Discussions are ongoing between representatives of the workers and the shareholders and with the trustee and it is hoped that the distribution of the balance in the fund can take place in the near future.

Finally, I understand that the liquidator has accepted, based on legal advice, that the workers have contractual entitlements to the redundancy terms offered by the company in the past. The liquidator has estimated that these entitlements are worth in excess of €60 million. However, until the liquidation is completed, it will not be clear how much of this the liquidator will be able to pay. At the time of the liquidation of the company, it appeared, based on the statement of affairs produced by the board, that ordinary creditors could expect to receive about 75% of the amounts owed to them. However, with the addition of the claims which the employees now have as ordinary creditors, it seems likely that the rate of dividend payable to all ordinary creditors, including the employees, will be somewhat lower. I should also mention that the arrangements for claims from theex gratia fund provide that the amount received from the fund will offset any amounts due from the liquidator in due course.

Question No. 188 answered with Question No. 178.