asked the Minister for Labour the amount of money now in the redundancy fund; if he has any plans to increase this amount; and if he will state the number of current claims on the fund.
41.
Ceisteanna—Questions. Oral Answers. - Redundancy Fund.
40.
asked the Minister for Labour the number of persons made redundant in the period 1st October, 1974 to 30th September, 1975; the amount paid from the redundancy fund in that period; and the level of the fund at each of the dates mentioned.
42.
asked the Minister for Labour the number of (a) employees and (b) firms awaiting payment from the redundancy fund; the average period of delay in each case; and the amount of money involved in each case.
43.
asked the Minister for Labour if he is concerned with the present level of the redundancy fund; and the steps he is taking to ensure that the fund is kept at a level to guarantee redundancy payments to those entitled to them.
44.
asked the Minister for Labour the reason for delay in payment of individuals and firms from the redundancy fund; and the steps being taken to eliminate delay.
With the permission of the Ceann Comhairle I propose to take together Questions Nos. 40, 41, 42, 43 and 44.
The number of redundancies notified to my Department by employers as qualified for payments in the year ended 30th September, 1975, was 18,480.
The estimated expenditure incurred by the redundancy fund in the year ended 30th September, 1975 was £5,860,000.
The fund is financed by way of weekly contributions by employers and workers and the present rates of contribution are providing an income of approximately £4½ million a year. Because of the increase in the number of redundancies, this income is not sufficient to meet the outgoings with the result that the level of the fund on the 30th September, 1975 as expressed in terms of money in the investment account, was nil, as compared with £185,000 at the same time last year. However, under Section 27 of the Redundancy Payments Act, 1967, the Minister for Finance may authorise repayable advances to the fund from the Exchequer to supplement its income from contributions. On 30th September, 1975 the fund had received a total of such advances of £1.3 million to meet its statutory obligations.
I am, of course, concerned that the fund is not at present self-supporting and if the employment situation does not improve I shall have to consider increases in the rates of contributions. As these increases will require affirmative resolutions in both Houses of the Oireachtas before I can make the necessary order, the House will have the opportunity of debating the matter.
Apart from the question of increases in the rates of contributions I am reviewing the operation of the scheme and I shall seek to give effect to what changes I consider appropriate at the earliest opportunity.
The Deputies will be aware that disbursements from the fund come under three headings, namely,
1. Weekly payments to the workers.
2. Percentage rebate payments to employers in respect of lump sums paid by them to the redundant workers, and
3. Payment of lump sums to workers from the fund in cases where the employer has failed to pay, for example, insolvency.
Unless there were some extraordinary features in a particular case, there is no delay in making the normal weekly redundancy payments which the workers are entitled to in addition to their social welfare benefits. These payments are made through the employment exchanges.
In line with the increases in the number of redundancies, there has been an increase in the number of claims for rebate payments being received from employers in respect of redundancy lump sums which they have paid to redundant workers. My Department have on hands 1,100 such claims to a total value of £870,000 from approximately 900 employers.
In a case where an employer fails to pay the lump sum to a worker, I am empowered to authorise payment of the lump sum out of the fund. Authority is given only after careful investigation to establish the facts in the particular case. There are on hands at present claims for lump sum payments in this category from approximately 600 workers to a total face value of £230,000.
I have recently ordered that priority should be given to the work of clearing these arrears and I expect that this will be achieved during the next few weeks.
May I ask the Minister if the £1.3 million which he said had been advanced by the Exchequer to the redundancy fund because of a short-fall in the amount available came from the excess money on hands which is lying to the benefit of the Exchequer in the pay-related fund?
I could not tell the Deputy what the exact position is but, as he is aware, it would not necessarily have to come from any particular fund, just from the Exchequer funds.
But this redundancy fund is a separate fund, whereas the pay-related fund is not?
Yes.
And the pay-related fund carries a substantial surplus but this one is in deficit?
Yes.