Dáil Éireann Debate, Wednesday - 27 May 2020
1001. Deputy Mary Lou McDonald asked the Minister for Employment Affairs and Social Protection if her attention has been drawn to the decision of the owners of a company (details supplied) to transfer valuable assets to its UK parent company, which results in an increased cost to the State in redundancy payments from the State insolvency fund. [8047/20]
View answerFirstly, I would like to say that my thoughts are with all workers faced with the prospect of closure and job losses at this difficult time. With the exception of grocery outlets, the retail sector has been particularly affected by the measures we have had to take in response to the spread of Covid-19. Having come through a number of turbulent years and an examinership process, it must be difficult for Debenhams workers to now face redundancy. I applaud their efforts to ensure that they get the best outcome possible from the situation. I wish to assure the affected workers that my Department is available through its Intreo service to assist them in whatever way we can in terms of income supports and job-seeking over the coming weeks and months.
Once a company becomes insolvent and enters into a court supervised liquidation process the Department of Employment Affairs and Social Protection is obliged by law to make statutory redundancy and other wage related entitlements to eligible employees. Payments are made from the Social Insurance Fund. When such payments are made I, as Minister for Employment Affairs and Social Protection, become a preferential creditor in the liquidation process and a dedicated debt management unit in the Department will engage with the liquidator in relation to any possible recovery of the debt.
The other matters raised in the question relate to company law provisions which are the responsibility of my colleague the Minister for Business, Enterprise & Innovation.
