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.
There 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. 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 €600 per week up to a maximum of eight weeks) are payable from the Insolvency Payments Scheme.
I have been advised by the Special Liquidators that significant steps have already been taken to address staff concerns including the announcement the Special Liquidators that the majority of staff would be retained until March 2014 in order to provide for an orderly wind-down of the business. This should provide some reassurance to IBRC staff relative to the common position in liquidations where staff contracts are terminated on liquidation. Furthermore, it is likely that some staff will, in time, gain employment by NAMA or other purchasers or servicers of the assets of IBRC.
