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Dáil Éireann díospóireacht -
Thursday, 24 Feb 2000

Vol. 515 No. 2

Written Answers. - Job Protection.

Donal Carey

Ceist:

97 Mr. D. Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that an official liquidator has been appointed to Kel Electronics, Ballymaley, Ennis, and the 72 staff have been told that their labour payments will not be made for approximately eight weeks; and if she will ask Shannon Development and the IDA to put prospective investors in touch with the liquidator immediately in order that this business will be put back into production to avoid the danger of losing customers to competitors. [5634/00]

On Monday 14 February the High Court appointed a liquidator to Kel Electronics on foot of a petition by one of its creditors to have the company wound up. The company was stated to have debts of more than £430,000 and all creditors supported the winding-up petition. As normal in a High Court liquidation, the legal position is that all contracts of employment in the company are terminated following the appointment of the liquidator, who is now assessing the statutory entitlements of the workforce. It is now the responsibility of the liquidator to assess the financial position of the company and its future prospects.

Regarding labour payments, the liquidator completed all appropriate documentation relating to "employee statutory redundancy", "arrears of wages and holiday pay" and "minimum notice entitlements" by 22 February. The average period required to process claims for employee statutory redundancy is about four to six weeks and for claims in respect of arrears of wages and holiday pay, four to eight weeks. On receipt of the completed "statutory redundancy" and "arrears of wages and holiday pay" forms from the liquidator, my Department will process these claims without delay.

Regarding claims for "minimum notice entitlements", the employees' entitlements have to be established at a hearing of the Employment Appeals Tribunal. The adjudication of these claims can, accordingly, take up to three months. As soon as a decision of the tribunal has issued to the parties concerned, my Department will ensure that payment will be made as expeditiously as possible.

Shannon Development is already working with the liquidator regarding prospective investors. A number have been identified and have been made known to the liquidator.

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