Richard Bruton (Dublin North Central, Fine Gael)

Many issues have been raised. The Minister for Social Protection has been intimately involved with the Vita Cortex situation and moved rapidly to ensure that the process that is in place under law where an employer is unable to pay was triggered. I acknowledge that there is a long waiting list for redundancy payments but in this case the Minister intervened directly to ensure that there would be a quick response.

It is clear that the cases of Vita Cortex and Lagan Brick are continuing industrial relations problems. We are seeking to resolve them through the labour relations structures and we will continue to work on them. I met the workers in Vita Cortex just the other day. I fully understand their frustration at what has happened. We sincerely hope we can resolve the problem. On the issue of future reform of the law, I am actively examining the issue whereby putting a company into administration automatically seems to close down some of the obligations. We must look at that afresh.

Deputy Wallace raised wider issues, which Deputy Boyd Barrett also raised, of company law, the relationships between related companies and the priority of various debtors in wind-up situations beyond those involved in the disputes in question. It is clear that the State has moved to ensure that workers are protected through the insolvency fund in the event of a company winding up. The State has not intervened in cases that go beyond statutory redundancy entitlements. Changing company law is a much wider issue on which I would have to take advice. It is not strictly within the sphere of employment law; it is a much wider issue that would have many knock-on effects.

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