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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Other Questions. - Redundancy Payments.

Paul Connaughton

Ceist:

70 Mr. Connaughton asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to increase the level of redundancy ceiling for employees; and if she will make a statement on the matter. [20310/02]

The report of the Redundancy Review Group was published by me on 22 October. I am pleased that the group, which included representatives of employers, workers and Departments, reached agreement on a wide range of policy and administrative issues. In particular, the group reached agreement on the treatment of older workers, insurability requirements, a ceiling on wages, qualification period, determination of weekly pay, non-reckonable service, employees working abroad, fines and penalties and the link between redundancy and training. Administrative issues that were agreed include the rounding of years of service, forms used in the administration of the scheme and the need for a new computer system.

The Government has agreed to proceed with the implementation of these changes. My Department will now prepare the necessary legislation to give effect to the policy changes. We will also plan for the introduction of a new IT system, which will include an e-government capability. This will greatly improve the efficiency and level of service offered by the scheme.

Certain items, including the level of the statutory redundancy ceiling, were not agreed by the Redundancy Review Group. However, the work of the group has clarified the costs involved in these items. As a result, the post-PPF negotiations, which have commenced recently, will benefit from the group's work in this regard and will be well informed regarding these costs.

I thank the Minister of State for the detail regarding the review of the redundancy payments legislation which dates from 1967. Would he agree that a half a year's pay for each year of service plus a bonus week's pay is now insufficient for many workers when seeking to meet their obligations? There is much unease in the work place regarding the economic climate. In view of this, does the Minister of State consider that an early decision should be made on this issue? The net cost to employers would be insignificant if the terms were increased by up to one week. With the help of the social insurance fund, the additional cost of an additional two weeks would only cost employers an extra €26.6 million. In view of this, does the Minister of State agree that the impending budget presents an opportune time to make these necessary changes?

The review group was established following the Government's acceptance that redundancy payments provided for under current legislation are low. The Government has decided to implement the findings of the review group. Increasing redundancy payments is a budgetary matter. It will be the subject of discussion at the partnership negotiations and will be considered in the preparation of the Estimates and the budget.

Written Answers follow Adjournment Debate.

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