Written Answers Nos. 110-129
110. D'fhiafraigh Deputy Éamon Ó Cuív den an Taoisigh an scaipfear leagan dhá theangach, Gaeilge agus Béarla, go chomhuaineach ar gach teaghlach sa Stát, den phlean nua náisiúnta Covid-19 a foilsíodh ar an 15ú Mean Fómhair; agus cen uair a dhéanfar sin. [25647/20]
View answerAn tosaíocht atá ann faoi láthair ná chun bileoga eolais a scaipeadh ar theaglaigh. Déanfaidh an bhileog seo achoimre ar An Creat um Bearta Sriantacha atá i bplean meántréimhseach an Rialtais Teacht Aniar agus Téarnamh 2020-2021- An Plean maidir le Maireachtáil le Covid-19. Beidh seo dhá theangach.
Aistreofar an Phlean é féin go luath.
111. Deputy Holly Cairns asked the Taoiseach his plans to reform Seanad Éireann within the lifetime of the 33rd Dáil. [24690/20]
View answerThe Seanad plays an important role as part of our legislature under the Constitution. In a democracy, any reform of the legislature must enjoy the confidence of the public as well as legislators. In this regard the Government is committed as a priority to the establishment of an Electoral Commission to enhance the governance of our democratic electoral processes.
The all-party Seanad Reform Implementation Group published its report in December 2018 including proposals on implementation of the 2015 Manning Report. The report’s recommendations were not unanimously endorsed by the group’s members.
While there was some brief consideration of that report by the Houses in late 2019, if further examination of its proposals by the current members of the Houses were to lead to a consensus around some of the report’s recommendations, such a consensus would provide a basis for their implementation.
112. Deputy Holly Cairns asked the Taoiseach if his Department or bodies working on behalf of his Department are monitoring social media for those who criticise Government policy. [24691/20]
View answerThe Department’s press office manage the official social media accounts on behalf of the Department. As part of the press office’s normal operation, both traditional print and social media are monitored for content of relevance to the work of the Department.
113. Deputy Ged Nash asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of persons employed by the IDA by county; and if he will make a statement on the matter. [24812/20]
View answerIDA Ireland operate a total of ten offices in Ireland. This number includes their headquarters in Dublin and nine regional offices across the North-East, North-West, Midlands, West, Mid-West and South-West regions. The Agency's regional teams - as well their staff in Dublin and overseas - are working hard to attract further investment to the regions. Those efforts are producing results, with 2019 witnessing the creation of almost 5,400 net new jobs by IDA client companies in regional locations. The enterprise agencies under my remit will continue to engage with their clients and with one another to secure further investment and jobs for the regions.
The table below outlines the number of staff employed in IDA Ireland's offices across Ireland.
|
Region |
Office |
Staff Number |
|
North-East |
Cavan |
1 |
|
North-East |
Dundalk |
3 |
|
North-West |
Sligo |
10 |
|
North-West |
Letterkenny |
2 |
|
South-East |
Waterford |
6 |
|
South-West |
Cork |
7 |
|
West |
Galway |
4 |
|
Mid-West |
Limerick |
5 |
|
Midlands |
Athlone |
44 |
|
Dublin |
Dublin 2 |
171 |
114. Deputy Mattie McGrath asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures he is planning to support the hotel and hospitality industry which are at imminent risk of a further 100,000 job losses and hotel closures unless restrictions limiting events to six persons are lifted immediately; the steps he will take to improve liquidity of such businesses; and if he will make a statement on the matter. [24823/20]
View answerSince the onset of COVID-19, my Department has worked to ensure that there are appropriate responses is in place to assist businesses that have been impacted by the economic disruptions arising as a result of the pandemic. These responses include information and advisory supports, as well as liquidity supports in the form of grants and loan guarantee schemes.
My Department has worked with the Department of Agriculture, Food and the Marine to develop three Government-guaranteed loan schemes operated by the SBCI and delivered through participating finance providers.
Each of these schemes provides support to COVID-19-impacted businesses depending on their needs:
- COVID-19 Working Capital Scheme:
This scheme makes available working capital loans ranging from €25,000 to €1.5m to eligible businesses exposed to COVID-19-related impacts. Loans of under €500,000 are available unsecured. Loans under this scheme are available for terms of up three years to help businesses to innovate, change or adapt in response to the pandemic. These innovations may include adjustments to ensure that a business can continue to operate safely.
- COVID-19 Credit Guarantee Scheme:
This scheme makes up to €2 billion in lending available to eligible businesses. Loans under the Scheme range from €10,000 to €1m. Loans of up to €250,000 under the Scheme are available unsecured (except where this is a requirement of the product feature, as in the case of asset finance, invoice discount facilities, etc). Its focus is to provide additional liquidity to businesses in a wide range of sectors including primary producers and small mid caps (employing up to 500). Loans under this scheme are for terms of up to five-and-a-half years. Resulting from the 80 percent Government guarantee, businesses will be able to avail of loans at reduced interest rates.
- Future Growth Loan Scheme:
This scheme has recently been expanded and now makes up to €800m in lending available to eligible businesses to support long-term, strategic investment, including in response to COVID-19. Loans under the scheme range from €25,000 to €3m and loans of under €500,000 are available unsecured.
Loans under this scheme are for terms of 7-10 years.
Micro-enterprises that have been negatively affected by the onset of COVID-19 may also be eligible for lending from MicroFinance Ireland under its own COVID-19 loan scheme:
- MicroFinance Ireland COVID-19 Business Loan:
Loans under this scheme range from €5,000 to €25,000 and are available with zero repayments and zero interest for the first six months, with the equivalent of an additional six months interest-free subject to certain terms and conditions.
Loan terms are typically up to three years.
Loan schemes aside, businesses in the hospitality sector may also be eligible for the enhanced Restart Grant. This enhanced grant support is open to businesses that have had 25% reduction in turnover due to COVID-19 restrictions or downturn in trade, provided they commit to reopening and to hiring and sustaining employment.
The grant is based on the amount of the rates assessment for the premises for 2019 (excluding arrears) with a new minimum grant of €4,000 and a maximum grant of €25,000 (Increased from €2,000 min and €10,000 max).
Eligible firms include medium sized firms with up to 250 employees, as well as small firms (increased from 50 employees) with a turnover of up to €25m, and turnover of less than €100k per employee, increased from turnover limit of €5m. Therefore, a business with 50 employees and €5m turnover, 100 employees and less than €10m turnover, and so on with a business with 250 employees having a max. of less than €25m turnover are eligible.
The hospitality sector, restaurants, pubs, activity centres and tourist attractions, e.g., galleries, museums are eligible if they are operating from a rated premises. B&Bs in non-rated premises will be eligible to apply for the minimum €4,000 grant from Fáilte Ireland.
On 18th September last I announced the Government's decision to provide a 30% top-up to the Restart Plus Grant for eligible businesses in Dublin City and County. This top-up follows on the top-ups we announced for Kildare of 40% and Laois and Offaly of 20% respectively following the increase in restrictions on those counties in August. We have also provided a top-up for wet pubs of 40%.
More information on these schemes is available on my Department’s website, at dbei.gov.ie/coronavirus
Fáilte Ireland, as the National Tourism Development Authority has also responded to the COVID-19 crisis by immediately setting up a Business Supports Taskforce to establish the supports required by the industry to ensure the survival and successful relaunch of the sector.
More information on Fáilte Ireland’s supports to COVID-19 impacted businesses are hosted on a dedicated online COVID-19 Business Supports Hub on failteireland.ie
Some elements of this question fall under the remit of other Government Departments, and where appropriate those elements will be responded to by the Ministers of Finance and Housing, Planning and Local Government.
115. Deputy Martin Browne asked the Tánaiste and Minister for Enterprise, Trade and Employment the estimated cost in 2021 if the budget allocation for Director of Corporate Enforcement increased by 33%. [24921/20]
View answerA funding allocation of €6.057 million was provided for the Office of the Director of Corporate Enforcement (ODCE) for 2019. This represented an increase of approximately 20% on the 2018 allocation and remained unchanged for 2020. The estimated full year cost for 2021 if the 2020 funding allocation for the ODCE increased by 33%, (€1.999 million), would be €8.056 million.
116. Deputy Bernard J. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if the address of an employer (details supplied) can be amended; and if he will make a statement on the matter. [24942/20]
View answerAll applications for employment permits are processed in line with the Employment Permits Acts and associated Regulations which lay down in legislation the criteria in relation to the application, grant and refusal of an employment permit. All employment permits are employer and location specific.
Where an employer requires an employee to work in more than one location then this should be notified to the Department at the time of application. Where there is a change of location proposed after a permit has issued the Department must be contacted and notified in advance of any move to determine if a new employment permit is required.
It is not possible for an employment permit holder to change employer without a new employment permit issuing.
My officials inform me that they met with the employer (details supplied) to discuss this issue and had sought further information from the employer in advance of any decision being taken within the framework of the relevant legislation. This information has not yet been received.
117. Deputy Matt Shanahan asked the Tánaiste and Minister for Enterprise, Trade and Employment his further plans to engage with the liquidators appointed to a company (details supplied); and if he will make a statement on the matter. [25052/20]
View answerDebenhams is a court-supervised liquidation, subject to oversight of the High Court and accordingly is sub judice. Under the Companies Act 2014, I have no power to intervene in a court-supervised liquidation.
Similarly, the Government cannot intervene with a liquidator, who has a statutory duty to realise assets and distribute to creditors in accordance with the law and who reports to the High Court.
Notwithstanding this, I have met with Debenhams employees and their union, Mandate, to hear their views and concerns. The Taoiseach and Government Ministers have also met on a number of occasions with Debenhams employees and Mandate, the most recent being in late August. While the Government cannot interfere with the High Court-overseen liquidation process, Ministers have sought at all times to ensure that the concerns of workers are heard and that the State’s employment and training services are responding to the needs of workers. The Government is also committed to detailed and serious consideration of ICTU’s recent proposals concerning the treatment of collective agreements when companies are undergoing liquidation.
The Government is supportive of the best outcome that is possible for the workers, within the legal framework available. I continue to call on all parties to enter into discussions and engage towards a fair resolution.
118. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment the contingency plans in place for the extension of validity for workplace employment permits in cases in which they are due to expire in the short-term and persons with expired workplace permits are not permitted to work; the way in which renewals can be facilitated; and if he will make a statement on the matter. [25089/20]
View answerIn March 2020, the Employment Permits Section of my Department implemented a COVID-19 contingency plan to ensure that the employment permit regime could continue to operate throughout the crisis. Since 30th March, the employment permit system has been operating fully remotely and online.
Operational practices have been adjusted to replace the paper-based elements of the service to allow for a fully online process involving electronic/scanned documents and all decisions/outcomes now issue via e-mail rather than by post. Agreement was reached with the Immigration Service Delivery in the Department of Justice and Equality on arrangements to introduce, on a temporary basis, a type of “e-employment permit” and a similar soft copy process to transition to permanent residence permission.
Applications for employment permits, including renewals, may be submitted online via the Employment Permits Online System which also provides intuitive advice and information on the eligibility requirements and relevant criteria. In order for a renewal application to be considered, it must be submitted to my Department no earlier than three months before the permit is due to expire or within four weeks of the permit expiry date. An employment permit holder may continue to work whilst their renewal application is being processed. A suite of information is also provided on my Department’s website with advice on the different types of permits, remuneration and other eligibility criteria, employer checklists and an FAQ document which answers the majority of the most common questions, all of which are available through this link - https://dbei.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/.
Employment Permits Section is fast tracking and prioritising employment permits for health service workers to ensure rapid deployment of much needed additional and key front-line staff. Since mid-March, a total of 3,099 permits for health care workers have been expedited and issued.
Full details in relation to the contingency arrangements introduced by the Employment Permits Section in response to the pandemic can be accessed on my Department's website through the following link: https://dbei.gov.ie/en/Publications/COVID-19-Employment-Permits-System-Contingency-Arrangements.html
119. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment the options open to a person (details supplied) in cases in which they have an employment permit which is due to expire in the short-term in view of the fact that persons with expired workplace permits are not permitted to work; the way in which a renewal can be facilitated in cases in which the person remains able to fulfil the conditions of issuance; the steps that are taken in cases in which the permit expires and they are no longer permitted to work past the valid date; and if he will make a statement on the matter. [25090/20]
View answerIn order to work in the State all non-EEA nationals require a valid employment permit or relevant immigration permission from the Minister for Justice and Equality which allows them to reside and work in the State without the requirement for an employment permit.
The Employment Permits Section of my Department inform me that on 4th September 2020 a Critical Skills Employment Permit issued in respect of the named person (details supplied). This permit is valid until 3rd September 2022.
Applications for employment permits, including renewals, may be submitted online via the Employment Permits Online System which also provides intuitive advice and information on the eligibility requirements and relevant criteria. A suite of information is also provided on my Department’s website with advice on the different types of permits, remuneration and other eligibility criteria, employer checklists and an FAQ document which answers the majority of the most common questions, all of which are available through this link - https://dbei.gov.ie/en/What-We-Do/Workplace-and-Skills/Employment-Permits/.
Employment Permits granted relate to employment permission only and at all times the permit holder is required to have current appropriate immigration permission from the Department of Justice and Equality to allow them undertake employment in the State. Any queries in relation to immigration permissions or visas fall within the remit of my colleague. Ms. Helen McEntee TD., Minister for Justice and Equality.
120. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason phase one of the restart grant scheme which was advertised nationwide to run until 31 August 2020 was subsequently changed and a closure date of 22 July 2020 applied (details supplied) consequently meaning countless businesses which had applied or awaiting to apply had lost out on grants; if he was responsible for the changing of the date; and the reason the decision was taken. [25257/20]
View answer121. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment when the appeals process, established due to the changing of the date for applications of phase one of the restart grant scheme, will conclude; the amount that has been set aside for successful appeals; and if he will make a statement on the matter. [25258/20]
View answerI propose to take Questions Nos. 120 and 121 together.
As previously communicated to the Deputy via written correspondence, the Government decided to introduce a new grant scheme; i.e. the Restart Grant Plus scheme with higher grant levels, to the benefit of a much larger group of businesses.
It was therefore decided to end the original Restart Grant scheme to allow for the enhanced scheme. It did not make sense to run two similar schemes, with different criteria and grant levels, as it would only cause confusion for applicants and those administering the scheme alike.
Any business that feels it would have been eligible for the original scheme, but for genuine reasons was not in a position to apply before its closure, may appeal to its Local Authority. Funding for grants paid following appeal will be met from the €550m provided for the Restart scheme. Appeals can continue to be made while the Restart Plus Grant scheme remains open.
122. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will meet with an association (details supplied) regarding the crisis facing the sector. [25278/20]
View answerMy Department and its agencies have been focussed on coming up with solutions to help businesses overcome the challenges presented by the unprecedented difficulties caused by COVID-19. I am acutely aware of the issues facing the events sectors in Ireland. Officials in my Department, Ministers of State in my Department and I are in ongoing contact with representative bodies. In that context I welcome contact with all bodies regarding their challenges and suggestions.
I recognise that the events and exhibition sector is a critical part of the ecosystem for business and commerce in the country. I am acutely aware of the difficulties the sector has faced in recent months due to the impact of social distancing requirements.
I am pleased the Government's COVID-19 published last week, 'Resilience and Recovery 2020-2021: Plan for Living with COVID-19' specifically deals with this category of organised events and we will continue to work with the sector to progress the development of agreed protocols to enable the hosting of events in the near future.
Details of the wide range of supports available are available on my Department’s website at https://dbei.gov.ie/en/What-We-Do/Supports-for-SMEs/COVID-19-supports/.
In the wider context of the Government’s Resilience and Recovery 2020-2021: Plan for Living with COVID-19, the operation and reopening of Ireland will be guided by the need to manage risk and repairing the damage that COVID-19 has inflicted on society, and the implementation of appropriate measures to do so across business and society as the situation evolves.
123. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the value of regional aid granted under the regional aid guidelines in each of the past seven years; the value by county or lowest possible NUTS level over the period; and if he will make a statement on the matter. [25279/20]
View answerThe EU Regional Aid Guidelines (RAGS) provides for enhanced rates of State Aid in the least economically developed areas of each Member State. The 2014-2020 Regional Aid Guidelines entered into force on 01 July 2014. Under the terms of the 2014 -2020 RAGS, regions covering 51.28% of Ireland’s population are designated as ‘assisted areas’.
Ireland, as a whole, has not granted any aid under the Regional Aid Guidelines. This is not unusual and is the situation in most Member States. Instead, Irish granting authorities, including those under the remit of my Department, avail of Regional Aid under the Block Exemption Regulations. The Block Exemption Regulations are a mechanism to grant pre-approved aid under various categories in a simplified and efficient manner. Member States are encouraged to use this mechanism and as a result, 97% of new aid in EU is now granted under the General Block Exemption Regulation (GBER).
I can only provide information on aid granted by the enterprise agencies under the remit of my Department, as individual Granting Authorities are responsible for reporting on Schemes they operate. It is also not possible to provide information by county or NUTS, as all aid is reported at aggregate level for a Scheme under the GBER.
The value of aid granted under the Regional Aid (Industry and Services) Scheme General Block Exemption Regulation 2014-2020, which is the umbrella Scheme for the Enterprise Agencies of my Department to grant Regional aid under the GBER, has been as follows:
|
Year |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
Value of aid in EUR Million |
Scheme launched |
€6.068m |
€14.260m |
€28.9m |
€32.78m |
€47.79m |
Not yet available |
124. Deputy Michael Fitzmaurice asked the Tánaiste and Minister for Enterprise, Trade and Employment when funding will be issued to local authorities to allow them to distribute the restart grant plus scheme; and if he will make a statement on the matter. [25292/20]
View answerOn 23rd July 2020 I announced that in order to further support enterprises as the economy reopens and resumes activity, further grant funding of €300 million would be provided to businesses through an enhanced Restart Grant Plus Scheme.
The additional €300 million provided in the July stimulus package allowed further categories of businesses to benefit in that businesses impacted by a 25% reduction in turnover due to COVID-19 restrictions or downturn in trade are eligible provided they commit to reopening and to hiring and sustaining employment.
Necessary funding has been distributed to all Local Authorities and Local Authorities have been quickly processing applications since the launch of the Scheme.
Further information and application forms are available on the website of all Local Authorities.
125. Deputy Dara Calleary asked the Tánaiste and Minister for Enterprise, Trade and Employment further to Parliamentary Question No. 156 of 15 September 2020, if the IDA has submitted a revised planning permission application to Mayo County Council; if not, the reason therefor in the context of previous assurances; and if he will make a statement on the matter. [25297/20]
View answerSince this issue was last raised by the Deputy in Parliamentary Question no. 156 from September 15th, my Department has been informed by IDA Ireland that they have not submitted a revised planning permission application to Mayo County Council in relation to this site. IDA Ireland is assessing the potential of all its land banks in the context of the Agency’s forthcoming Strategy. A revised planning application with respect to this site will be considered in line with the IDA's commitment to regional development which will be a key objective in this new strategy. IDA Ireland continues to actively market this site to clients considering investing or expanding in County Mayo.
126. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the estimated cost of increasing funding to InterTradeIreland by 50%. [25312/20]
View answerInterTradeIreland (ITI) is jointly funded by my Department and its counterpart in Northern Ireland, the Department for the Economy.
In 2020, my Department's allocation to ITI was €12.692m. That allocation is made up of €10.192m in core funding and an additional €2.5m which was allocated to ITI in April to help cross border firms navigate the challenges that have arisen as a result of the Covid-19 pandemic. The Government has been steadily increasing the core funding to ITI in recent years to enable the body to engage with more of the companies that are seeking its support through the Brexit Advisory Service, as well as meeting demand for existing programmes which are all designed to promote and support cross-border trade.
An increase of 50% to the core funding provided to ITI by my Department would require an additional €5.096m.
127. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the estimated cost of increasing funding to Enterprise Ireland by 10%. [25314/20]
View answerThe Deputy should note that the exchequer funding provided to Enterprise Ireland through my Department’s Vote encompasses two discrete Subheads A7 and B4, which span general supports to indigenous firms and for research and development/innovation supports. Enterprise Ireland’s activities are also funded from the generation of Own Resource Income of the order of approximately €75 million per annum which subject to the sanction of the Minister for Public Expenditure and Reform they may retain for use on programme activity.
A total of €282.082 million was allocated to Enterprise Ireland in the Revised Estimates published by the Department of Public Expenditure and Reform in December 2019. The Revised Estimate for my Department approved by the Dáil on the 30th June subsequently increase the funding to EI to €676.582 million. EI is also likely to receive further funding arising the stimulus package agreed by the Government in July which is expected to be submitted for the approval of the Dáil in due course. The increases provided in the June Revised Estimate and agreed in the July stimulus are in the main by way of additional capital funding to allow Enterprise Ireland to provide specific support to those enterprises most impacted by the Covid-19 pandemic.
In terms of increasing Enterprise Ireland’s funding, the Table below sets out the cost of increasing the exchequer funding to EI by 10% on the allocations published in the 2020 Revised Estimate last December.
|
- |
Enterprise Ireland REV allocations 2020*€ (M) |
Application of 10% Increase€ (M) |
Cost € (M) |
|
Subhead A7 |
155,288 |
170,817 |
15,529 |
|
Subhead B4 |
126,794 |
139,473 |
12,679 |
|
Total |
282,082 |
310,290 |
28,208 |
*As published Dec 2019
The table shows the allocations as published in the 2020 Revised Estimates Volumes and does not account for any Supplementary Estimates or Carryovers of unspent capital monies as provided for under Section 91 of the Finance Act, 2004
The table above does not capture other Exchequer funding being provided to Enterprise Ireland in 2020 from the Votes of the Department of Agriculture, Food and the Marine and the Department of Communication, Climate Action and Environment.
Enterprise Ireland is also provided with funding from the National Training Fund (NTF).
128. Deputy Louise O'Reilly asked the Tánaiste and Minister for Enterprise, Trade and Employment the estimated cost of trebling the young entrepreneur fund. [25315/20]
View answerIreland’s Best Young Entrepreneur (IBYE) is a programme targeting Ireland’s young entrepreneurs, developed and run by the 31 Local Enterprise Offices (LEOs) with the support of the Department of Enterprise Trade and Employment, Enterprise Ireland and Local Authorities. Annually in excess of 1200 young entrepreneurs across the country enter the competition. Since its inception in 2014, over 600 young entrepreneurs have received in excess of €8million in IBYE funding as well as a wide range of vital training and mentoring to support them on their entrepreneurial journeys.
The competition is open to people between the ages of 18 and 35 with an innovative business idea, new start-up or established business. As part of the IBYE process, up to 450 young entrepreneurs are invited by the LEOs to attend free regional ‘Entrepreneur Bootcamps’ to help them develop their businesses and new venture ideas.
Former IBYE national finalists including Shorla Pharma, Glofox, Output Sports, Buymie Technologies, Strong Roots and Beats Medical are international success stories having raised significant investment while increasing employment and exports. Independent research commissioned in 2017 highlighted the impact that Irish entrepreneurs made in 2014, 2015 and 2016 through the IBYE programme. Between 2014 and 2016, 4,259 young entrepreneurs applied for IBYE, of which 1,350 received business bootcamp training and one-to-one mentoring. 348 of those entrepreneurs won IBYE investment funding of between €3,000 and €50,000 from their Local Enterprise Office and had generated annual sales of €124million and employed 2,217 people. The total investment by Government through the Local Enterprise Offices across the three years in the IBYE programme was €5million.
The investment fund is €1,650,000, consisting of €50,000 for each of the 31 LEOs and €100,000 in National Investment. The overhead cost for the last two competitions has been c. €960,000 on each occasion. This comprises IBYE Bootcamp Funds (€16,000 per LEO) and IBYE Local Marketing Funds (€5,000 per LEO) with the balance managed nationally towards project management, website and marketing.
IBYE is currently being evaluated in terms of the future orientation and funding of the programme.
129. Deputy Cian O'Callaghan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps he will take to ensure that workers with enhanced redundancy payments are provided for by way of collective agreement will be treated as a preferential creditor in cases of insolvency; and if he will make a statement on the matter. [25335/20]
View answerThe law governing preferential treatment of creditors in circumstances where a company is unable to pay its debts is contained in section 621 of the Companies Act 2014, as amended. A preferential creditor is one whose debts are deemed to be more important than the debts of another creditor. The current law is a result of careful balancing of the various rights of creditors, including employees. In terms of wage arrears, outstanding holiday pay, and pension scheme contributions, employees are always considered preferred creditors. If the company’s insolvency is such that the assets are not enough, the State guarantees the employees’ statutory entitlements.
Collective bargaining is a voluntary process involving employees and employers in a given context. Such agreements are often frustrated in the event of an insolvency i.e. because the company is unable to pay its debts. The question as to whether such third-party contracts can be given preferential treatment, potentially affecting the property rights of other creditors, will require careful consideration and an understanding of different regulatory frameworks.
There is a Programme for Government commitment to review whether the current legal provisions surrounding collective redundancies and the liquidation of companies protect the rights of workers effectively. I have asked the Company Law Review Group to undertake an expedited review of this commitment as it relates to company law, to be completed before the end of the year.
Additionally, ICTU has made proposals concerning the treatment of collective agreements when companies are undergoing liquidation. Minister English responded to ICTU on 10th September welcoming the submission and confirming that the Government is committed to ensuring the proposals are considered including a meaningful engagement with stakeholders.
