Mr. Gerard Reynolds:

I will answer some of those. We have looked at the Danish model and examined its compensation scheme. While there are differences in the actual calculations, the fundamentals are the same. The Danish scheme provides for compensation for a ten-year period. This is what we are proposing. It is the most recent example. The reason we suggest a multiple of ten years is that the initial calculation of an average over ten years going back takes in significant loss-making periods. It gives an average profitability. This prohibition is proposed to come in immediately. This will preclude the farmers from participating in a period of profitability which, going by previous cycles, would be a period of five years minimum of profitability. The farmers are foregoing that period of profitability by being prohibited now. If the average profitability was determined over a five-year period in the last good period, which was 2011-15, and which we feel is reflective of what is going to happen in the coming five years, the multiple of ten would be a negotiable figure then. With an average over ten years it takes into account loss-making periods. We feel that a multiple of ten is appropriate. Again, it depends, as the Deputy has mentioned, on the baseline that is agreed. When the baseline agreed is reasonable the multiple is negotiable in any valuation. I read an article recently in the Irish Tax Reviewthat calls it the mysterious world of company valuations. It is very much a subjective issue. The Deputy is right that ten is a high figure but in the circumstances we present we believe it is reasonable. If the base figure is calculated on a more realistic basis that is something that could be discussed.

The Deputy referred to statutory redundancy. I accept that this is provided for in legislation but I repeat that in most negotiated settlements there would be agreement where employees would benefit from more than a statutory level of redundancy. In these circumstances, to suggest that employees only get statutory redundancy is not equitable in any sense for the employees.