The State has already made a significant financial contribution to assist the former employees of Irish Fertiliser Industries. Following the decision by the board of IFI to put the company into liquidation, ICI and the State, the shareholders in IFI, while there was no legal obligation to do so, established a special fund with almost €24.5 million to provide ex-gratia severance payments to the former employees of IFI. All applications from employees to the ex-gratia fund of €24.5 million, have now been processed. Payments from the fund were made in accordance with the basis for distribution determined by the trustee of the fund, which has been endorsed by a ballot open to all employees.
In addition, the liquidator has, based on legal advice received, admitted, as unsecured creditors in the liquidation, claims from the employees of the company to have entitlements in respect of the voluntary severance terms traditionally paid by the company. However, the dividend payable to the workers concerned, if any, can only be determined when all the assets of the company have been realised and all liabilities established. In addition, the arrangements for the ex-gratia fund of €24.5 million provided by the shareholders provide that any such dividends would be reduced by the amounts received from the fund. It must be emphasised, of course, that the amount to be paid in due course in respect of such claims, if anything is a matter solely for determination by the liquidator.
As regards pensions, I am aware that employees based in Belfast, who are deferred pensioners of the Richardson's pension fund, are likely to receive much reduced pension entitlements. The specific financial position of the Richardson's fund appears to have arisen primarily from a combination of the statutory rules which currently apply on the winding up of a pension fund in the UK and a shortfall in the assets of the Belfast fund compared with its liabilities as a result of the fund trustees investment strategy coupled with a significant fall in the equities market.
I understand that the UK government has announced proposals to deal with the issue of pension shortfalls arising from insolvencies but I am not aware of the impact, if any, this may have on the shortfall in the Richardson's scheme. In addition, I understand that the trustees of the Richardson's scheme have submitted a claim to the liquidator of IFI and that he is currently considering, in consultation with his legal and actuarial advisers, whether, and to what extent, this claim is admissible.
While I have the utmost sympathy for the plight of the members affected by the shortfall that has arisen in the scheme, I am satisfied that the Government does not have any obligations in respect of the shortfall which the pension scheme faces.
