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Dáil Éireann díospóireacht -
Tuesday, 16 Dec 2003

Vol. 577 No. 3

Written Answers. - Company Liquidation.

John Gormley

Ceist:

60 Mr. Gormley asked the Minister for Education and Science the reason ITE or the Linguistics Institute of Ireland was liquidated early this month. [30967/03]

John Gormley

Ceist:

113 Mr. Gormley asked the Minister for Education and Science if the job security or redeployment of permanent and contracted employees at the Linguistics Institute of Ireland will be guaranteed; if not, the reason therefor; and if he will make a statement on the matter. [30966/03]

I propose to take Questions Nos. 60 and 113 together.

Institiúid Teangeolaíochta Éireann is a company limited by guarantee and without share capital, having been incorporated in 1972. In recent years a value for money study and an independent consultancy study have made recommendations about the reorganisation of the institute's activities. My Department had discussions with representatives of the company's executive committee about its future intentions, having regard to a number of operational issues. The operation of the company is a matter for the members in accordance with their memorandum and articles of association.

On 18 July the company held an extraordinary general meeting and it agreed to initiate a process of voluntary liquidation. The decision was taken prior to the finalisation of the Department's Estimates for 2004 and was not related to financial considerations. On 5 December the executive committee of ITE agreed a timetable for the proposed appointment of a liquidator on 9 January 2004. It also agreed to issue redundancy notices to staff in advance of the appointment. On 5 December staff were briefed to apprise them of developments.

My Department gave a commitment to provide every assistance to the company in giving effect to its future intentions, in partnership with the staff of the institute. It will include arrangements for ensuring the continuation of the research functions previously carried out by the institute. In the interests of assisting with an orderly wind-up my Department will facilitate appropriate redeployment or other arrangements for permanent staff in line with general public service policy in these matters and subject to agreement with the Department of Finance.

Options that may be available are being explored. My Department will aim to be in a position to advise in this regard in advance of the expiration of the period of notice of redundancy and the appointment of a liquidator. He or she will assume responsibility for the control of the company's affairs upon appointment. The entitlements of those employees, for whom appropriate redeployment arrangements are not made, will be determined in accordance with the terms of their contracts. I have asked to be kept informed of progress in these matters.
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