IBRC Staff

Dáil Éireann Debate, Tuesday - 25 March 2014

Tuesday, 25 March 2014

Questions (218, 225, 258)

Finian McGrath

Question:

218. Deputy Finian McGrath asked the Minister for Finance if he will support the IBOA members in the Irish Bank Resolution Corporation in respect of their redundancy terms (details supplied). [13216/14]

Clare Daly

Question:

225. Deputy Clare Daly asked the Minister for Finance if he will intervene to assist a person (details supplied) in their efforts to mediate at Irish Bank Resolution Corporation to resolve outstanding issues of compensation for staff who will be made redundant, particularly in view of the fact that they previously indicated that the staff would be able to transfer to the National Asset Management Agency but this will not now happen. [13358/14]

Ciaran Lynch

Question:

258. Deputy Ciarán Lynch asked the Minister for Finance the progress that has been made in reaching agreement regarding redundancy terms for the Irish Bank Resolution Corporation employees (details supplied); and if he will make a statement on the matter. [13947/14]

Written answers

Minister for Finance

I propose to take Questions Nos. 218, 225 and 258 together.

I can confirm that senior officials from the Department have met with the person named and are continuing to engage with all parties in relation to staff concerns in IBRC.

The Special Liquidators have indicated that they remain highly cognisant of the issues that the IBOA have been highlighting and that significant steps have already been taken to address those concerns to date including the extension of all staff contracts out to the end of March 2014 and in many cases out to the end of 2014 almost two years following the commencement of the liquidation. This should provide some reassurance to IBRC staff relative to the common position in liquidations where staff contracts are terminated immediately. It remains the position that some staff may, in time, be re-hired by NAMA, its service providers or other purchasers of the IBRC assets as the sale processes are completed.

In relation to the improved redundancy terms being sought I am advised by the Special Liquidators that the voluntary severance scheme, that was in place prior to liquidation, is no longer operational and that IBRC employee contracts were terminated in the Republic of Ireland in February 2013 on the appointment of the Special Liquidators. As a result of the termination of the employment contracts, employees were entitled to apply for a statutory redundancy payment and a statutory notice payment, subject to the limits prescribed by statute.

While my officials will continue to engage on this matter, I am not in a position to interfere directly. 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.