asked the Minister for Industry, Commerce and Energy, in relation to companies which have gone into liquidation, if he is aware that preference is given to money owed on VAT and social welfare contributions over money owed to staff in payment of wages; that this arrangement often works to the disadvantage of employees; the plans, if any, to introduce legislation to remedy this situation; and if he will make a statement on the matter.
Written Answers. - Liquidated Companies' Debts.
348.
Section 285 of the Companies Act, 1963, sets out the debts which in the winding-up of a company shall be paid in priority to all other debts. These include all wages and salaries during the four months preceding the winding-up, subject to a limit of £300, and all accrued holiday remuneration. I am not aware that preference is given to money owed on VAT and social welfare contributions over money owed to employees. I have no plans at present to exempt VAT or social welfare contributions from priority debts. As the Deputy will appreciate, such a move, if contemplated, would require consultation with the Minister for Finance and with the Minister for Social Welfare because of its implications from their viewpoints.