Dáil Éireann Debate, Tuesday - 16 April 2013
301. Deputy Michael McGrath asked the Minister for Finance if he will consider using Section 9 of the Irish Bank Resolution Corporation Act 2013 to instruct the Special Liquidator to pay to the former employees the level of redundancy that was agreed prior to the liquidation of the bank; and if he will make a statement on the matter. [16933/13]
Amharc ar fhreagraThere are standard rules which apply to the distribution of the assets of companies in liquidation and it would not be appropriate for me to interfere with these rules by way of the use of Section 9 of the Irish Bank Resolution Corporation Act 2013 or otherwise. Such interference could have the impact of diverting the assets of IBRC from one category of creditor to another outside the normal Companies Acts priorities. Any such interference would be open to challenges in the Irish Courts by unsecured creditors. Notwithstanding the above, the State does intervene to ensure that statutory redundancy is available for IBRC staff through the Social Insurance Fund and that arrears of pay, sick pay, holiday pay or pay in lieu of statutory notice (limited to EUR600 per week up to a maximum of eight weeks) are payable from the Insolvency Payments Scheme.
I acknowledge the significant efforts and commitment made by the staff in IBRC over the past few difficult years whilst the bank was in wind down and the difficulties that arise for staff as a result of the liquidation but it was necessary to take the decision to liquidate IBRC in the larger public interest. I am sure the staff will continue to work to ensure a satisfactory outcome for Irish taxpayers while they remain in employment under the liquidation process. Furthermore, some staff may, in time, be re-hired by NAMA or other purchasers of the assets.
The Special Liquidators have advised that there is on-going interaction between the IBOA and the Special Liquidators. The Special Liquidators have indicated that they are highly cognisant of the issues that the IBOA have been highlighting and that significant steps have already been taken to address those concerns including the announcement on Tuesday 19 March by the Special Liquidators that contracts of staff would be extended out to 7 August with one month's notice thereafter. This should provide some reassurance to IBRC staff relative to the common position in liquidations where staff contracts are terminated on liquidation.
