Irish Fertilizer Industries.

Dáil Éireann Debate, Tuesday - 25 October 2005

Tuesday, 25 October 2005

Questions (310)

Brendan Howlin

Question:

378 Mr. Howlin asked the Minister for Enterprise, Trade and Employment if, in view of the recent announcement by the liquidator of Irish Fertilizer Industries that moneys realised allow payment of 39% of claims of creditors, and the fact that the State will make a considerable tax take from the sale of property by the liquidation, sufficient funds will be available to the liquidator to pay the promised level of redundancy to the former employees of the company; and if he will make a statement on the matter. [30496/05]

Written answers

Minister for Enterprise, Trade and Employment (Mr. Martin)

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 in accordance with the basis for distribution determined by the trustee of the fund, which was endorsed by a ballot open to all employees. These payments were in addition to statutory redundancy entitlements which were also paid.

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 realized 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.