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IBRC Staff

Dáil Éireann Debate, Tuesday - 16 April 2013

Tuesday, 16 April 2013

Questions (264)

Finian McGrath

Question:

264. Deputy Finian McGrath asked the Minister for Finance his views on correspondence (details supplied) regarding pay for bank staff. [16431/13]

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Written answers

I acknowledge the significant efforts and commitment made by the staff in IBRC over the past few difficult years whilst the bank was in wind down and the difficulties that arise for staff as a result of the liquidation but it was necessary to take the decision to liquidate IBRC in the larger public interest. I am sure the staff will continue to work to ensure a satisfactory outcome for Irish taxpayers while they remain in employment under the liquidation process. Furthermore, some staff may, in time, be re-hired by NAMA or other purchasers of the assets.

There are standard rules which apply to the distribution of the assets of companies in liquidation and it would not be appropriate for me to interfere with these rules. Such interference could have the impact of diverting the assets of IBRC from one category of creditor to another outside the normal Companies Acts priorities. Any such interference would be open to challenges in the Irish Courts by unsecured creditors. However the State does intervene to ensure that statutory redundancy is available through the Social Insurance Fund and that arrears of pay, sick pay, holiday pay or pay in lieu of statutory notice (limited to EUR600 per week up to a maximum of eight weeks) are payable from the Insolvency Payments Scheme.

The Special Liquidators have advised that there is ongoing interaction between the IBOA and the Special Liquidators. The Special Liquidators are highly cognisant of the issues that the IBOA have been highlighting and that significant steps have already been taken to address those concerns including the announcement on Tuesday 19 March by the Special Liquidators that contracts of staff would be extended out to 7 August with one month’s notice thereafter. This should provide some reassurance to IBRC staff relative to the common position in liquidations where staff contracts are terminated on liquidation.

Question No. 265 answered with Question No. 224.

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