I understand that the liquidator has made considerable progress in realising the assets of the company and establishing the full extent of its liabilities and that he hopes to complete the liquidation process later this year. At this stage, the plant and machinery at the main production facilities at Arklow and Cork have been sold and are in the process of being dismantled and removed from the sites by the purchasers. The production sites themselves remain the principal assets yet to be realised. It is understood that the liquidator has received an offer for the Cork site and that discussions are ongoing with the prospective buyer, while a number of parties have expressed interest in acquiring the Arklow site. It is a matter solely for the liquidator to determine whether to accept any particular offer made.
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. Payments from the fund were made were 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 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. It must be emphasised that the amount, if anything, to be paid in due course in respect of such claims is a matter solely for determination by the liquidator.
As regards pensions, I understand that the two main schemes covering employees in the Republic have sufficient funds to meet all of the entitlements provided under the schemes. While I understand that the schemes may not be in a position to provide some additional discretionary benefits that members had hoped to receive, it would appear that the payment of such benefits would always have been conditional on sufficient funding being available to meet the costs involved. I am aware that employees based in Belfast, who are deferred pensioners of the Richardsons' pension fund, are likely to receive much reduced pension entitlements. The specific financial position of the Richardsons' 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 Richardsons' scheme. In addition, I understand that the trustees of the various schemes involved have submitted a number of claims to the liquidator of IFI and that he is currently considering, in consultation with his legal and actuarial advisers, whether, and to what extent, these claims are 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 Irish Government does not have any obligations in respect of the shortfall that the pension scheme faces.
