I share the workers' disappointment that, despite the efforts of all those involved, it was not possible to find a solution to the severe financial difficulties at IFI. Regretfully, IFI made significant losses in the past year and in the absence of a plan to establish that the company could be viable, both shareholders agreed that the provision of further funding could not be justified. This decision was not taken lightly but against a background where the Government, through NET, and ICI as joint shareholders have been very supportive of the company, including by means of the provision of €34 million to the company in the past two years. Substantial efforts on the part of IFI's board of directors and shareholders to find a buyer for the whole or part of the company had proved similarly disappointing. Regrettably, this left the IFI board with no alternative but to liquidate the company.
The shareholders, while there is no legal obligation to do so, have established a special ex gratia severance fund with almost €24.5 million for the workers. This ex gratia fund is in addition to an estimated €11 million in statutory entitlements such as redundancy and minimum notice which employees will receive either as preferred creditors in the liquidation of IFI or directly from the relevant Government agency. Given that there will be a total of more than €35 million available, payments will amount to an average of about €57,000 per worker. Both the Irish Government and ICI believe that in setting up the ex gratia fund they are providing severance arrangements which are fair in the circumstances. It will be for the ex gratia fund's trustee to decide, after consultations with employee representatives, how payments from the ex gratia fund will be made.
As part of these arrangements, the shareholders have also provided funds to the trustee which enable him to make interim payments of €5,000 or three months pay if lower to each worker who has lost their job as a result of the liquidation, with pro rata payments for former part-time employees. This is to help them manage their financial situation through the short-term pending agreement with the trustee on the shape of the final scheme. These interim payments have been available since Monday, 18 November and a number of workers have now received such interim payments.