Billy Kelleher (Cork North Central, Fianna Fail)

I thank the Deputy for raising the matter. Every Deputy has faced similar sad situations where iconic companies such as Waterford Crystal face closure or liquidation because of a changed economic environment. I understand the concerns of the Deputy, the workers and their families and everyone in the south-east region. The Tánaiste and Minister for Enterprise, Trade and Employment apologises as she is unable to be present but she has been directly involved in the ongoing situation in Waterford for some time. Both the Minister and her senior officials have engaged in a number of meetings in this regard. We are all extremely anxious to ensure a satisfactory outcome to the current scenario.

The company went into receivership recently. Mr. David Carson was appointed as the receiver and the Minister has met him on a number of occasions over the past month. Due to a lack of funds, he felt he had no option but to cease production last Friday. It is important to emphasise that the company is in receivership but not liquidation. Mr. Carson is in discussions with a number of parties who have expressed interest in becoming involved in the future of the company. He is making every effort to negotiate a sale that would secure the maximum number of jobs in Waterford and the continuation of Waterford Crystal as a going concern. It is essential that his negotiations with interested parties can be brought to a conclusion at the earliest opportunity, as time is not on our side in resolving this situation.

Waterford Crystal Limited is a subsidiary of Waterford Wedgwood plc and employed several thousand people at its peak. The group engaged in several rounds of raising finance in recent years to recapitalise the loss-making operations in the group, which included Waterford Crystal. However, insufficient earnings due to changing market conditions, a weak US dollar and the economic downturn in the company's largest market — the US — resulted in defaults in debt servicing and repayments. On 5 January 2009, the company asked that its shares be suspended from trading on the Irish Stock Exchange and it said some of the group's Irish and UK subsidiaries had to go into receivership and administration. On 30 January, the receiver concluded that the company was not in a position to continue meeting the current payroll cost in respect of the workforce. Accordingly, Mr. Carson decided that he was left with no option but to immediately commence giving notice of redundancy to a large portion of the workforce.

Every effort is being made, and will continue to be made, to ensure that the company continues to operate as a trading entity. Should this not prove possible and redundancies arise, I assure Deputies that my Department will be ready to assist the employees of Waterford Crystal in accessing their statutory employment entitlements under the redundancy and insolvency payments schemes. The purpose of the redundancy payments scheme is to compensate workers under the Redundancy Payments Acts 1967 to 2007 for the loss of their jobs by reason of redundancy. Insolvency legislation is also administered by my Department and provides for the payment of certain wage-related entitlements owed to employees such as arrears of wages-salaries, sick pay, holiday pay, pension contributions and minimum notice. In the context of pension contributions, the scheme provides for payment of contributions deducted from an employee in the 12 months prior to insolvency, which remain unpaid, and any contributions due to be paid by the employer into the scheme in the 12 months prior to the insolvency but which were not paid. That is the sole purpose of the insolvency payments scheme as regards pension contributions, which contrasts with the more general issue of pension funds.

Regulatory responsibility for the oversight of pensions funding lies with the Department of Social and Family Affairs under the auspices of the Pensions Board. The Government is conscious of the pressures on employers sponsoring pension schemes and scheme trustees, arising from the significant losses incurred by pension funds over the past year. While measures were announced last December to ease the funding pressures on pension schemes, the Government is considering a comprehensive framework for future pensions, which will set out a new model that will aim to secure the future of social welfare, private, occupational and public service pensions.

These are difficult and uncertain times for the workers at Waterford Crystal. We all cling to hope in these challenging times. However, Waterford Crystal is an iconic brand worldwide and, at its peak, it provided gainful employment for up to 3,000 people. I am hopeful a satisfactory solution will emerge from the ongoing discussions in the coming days.

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