Dáil Éireann Debate, Tuesday - 2 February 2010
117 Deputy Ruairí Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of redundancies notified to her Department in respect of each year from 2002 to 2009 and to date in 2010; the number of projected redundancies for 2010; the amount of money paid out in statutory redundancy payment in respect of each year from 2002 to 2009; and if she will make a statement on the matter. [4844/10]
View answer140 Deputy Ruairí Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of claims for redundancy payments waiting to be processed within her Department at the latest date for which figures are available; the average time taken to process a claim; the steps she is taking to speed up this process; and if she will make a statement on the matter. [4845/10]
View answerI propose to take Questions Nos. 117 and 140 together.
Table 1 below sets out the number of statutory redundancies for the years 2002 to 2009 and provisional figures up to 29 January, 2010. These figures reflect the number of employees who actually qualified for statutory redundancy lump sum payments. They do not reflect those who lost their jobs with less than two years service in employment. It is not possible to project the number of redundancies which will arise in 2010 as this will depend on a number of factors, including economic factors and the rate of recovery in the economy. However, the figures available for January 2010 suggest that the pattern, which became evident in 2009, of an average weekly intake of 1,500 new claims is unfortunately continuing.
Table 2 sets out the monies paid out of the Social Insurance Fund in respect of redundancy claims for the years 2002-2009 and up to 27 January, 2010. It is not possible to project the amount which will be paid out in 2010 as this will hinge on a number of variables including the number of claims received, the length of service of the claimants etc.
The latest figures available to the start of January 2010 indicate that the number of redundancy claims on hand and awaiting processing stands at 41,249. I should point out that my Department has, in 2009, processed 50,664 claims, up 70% on last year, and made corresponding payments totalling €336m which results in average weekly payments to the value of €6.5m being issued. In the period 2007-2009, the level of new claims lodged with my Department has increased cumulatively by 200%. This contrasts with the period 2005-2006 in which period the increase in new claims lodged was just 10%.
My Department administers the Social Insurance Fund (SIF) in relation to redundancy matters on behalf of the Department of Social and Family Affairs. There are two types of payment made from the SIF — rebates to those employers who have paid statutory redundancy to eligible employees, and statutory lump sums to employees whose employers are insolvent and/or in receivership/liquidation.
The Redundancy Payments Section of my Department is currently processing rebate applications submitted by post from May 2009 and those filed on-line from June 2009, so that the waiting time is approximately 8 to 9 months depending on the manner of filing the application. In respect of lump sum payments paid directly to employees in instances where employers are unable to pay the statutory redundancy entitlements, the Section is, in general, processing claims dating from July 2009.
I should point out that efforts have been made by the Tánaiste and myself to deliver more acceptable turnaround processing times for redundancy payments given the difficulties that this gives rise to for both individual employees and the business community.
Measures already taken include:
the reassignment of 26.7 additional staff (full time equivalents) from other areas of the Department to the Redundancy Payments area since early 2009 with ongoing review of trends and demands. The current number of staff serving in the Redundancy Payments Section in terms of full time equivalents is 52.5;
the prioritisation of the Department's overtime budget towards staff in the Redundancy Payments Section to tackle the backlog outside normal hours;
the establishment of a special call handling facility to deal with the huge volume of telephone calls from people and businesses who are naturally concerned about their payments, using the facilities and cooperation of the National Employment Rights Authority (NERA). This centre has received an average of 12,500 calls per month this year with an estimated 60% relating to redundancy payments;
The provision of better quality information relating to current processing times on the Department's website;
Engagement with the Revenue Commissioners to facilitate the offset of redundancy rebate payments by employers against outstanding tax liabilities with the Revenue Commissioners.
The Tánaiste and I are monitoring closely the impact of these changes against the continuing influx of redundancy claims and it is clear that additional measures are required to help reduce the backlog of claims which currently stands in excess of 40,000. The Department is currently actively engaged in efforts to secure up to 16 additional staff resources deployed to the area in the first quarter of 2010.
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010* |
|
24,432 |
25,769 |
25,041 |
23,156 |
23,684 |
25,459 |
40,607 |
77,001 |
6,465 |
*Provisional figures.
|
(€000) |
||||||||
|---|---|---|---|---|---|---|---|---|
|
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008* |
2009* |
2010* |
|
53,978 |
88,933 |
152,162 |
149,172 |
166,483 |
183,328 |
193,711 |
336,404 |
22,411 |
*Provisional figures.
