Fergus O'Dowd (Louth, Fine Gael)

I am present to read the Minister's script and I would be more than happy to communicate to her the strength and significance of the contributions that have been made by the Deputies, who are from almost all parties in the House, so that she can understand the concerns, frustrations and deep disillusionment of the workers who have found themselves in this situation.

The Minister's understanding of this case is that administrators have been appointed following a review of the business. Her Department administers the redundancy payments and insolvency payments schemes, which may be availed of in this instance. The primary purpose of the redundancy payments scheme is to compensate workers under the Redundancy Payments Acts 1967 to 2011 for the loss of their jobs by reason of redundancy. Compensation is based on a worker's length of reckonable service and reckonable weekly remuneration, subject to a ceiling of €600 per week.

It is the responsibility of the employer to pay statutory redundancy to all eligible employees. An employer who pays statutory redundancy payments to employees is entitled to a rebate from the State. Rebates to employers and lump sums paid directly to employees are paid from the Social Insurance Fund. Where the employer has proven that it was unable to pay the statutory redundancy, the Department will seek to recover the amount paid less the amount of the rebate that would have been payable to the employer had the employer paid the statutory redundancy payment to the employees. Where it appears that the refusal or failure of the employer to pay the statutory redundancy was without reasonable excuse, any rebate to which the employer would otherwise have been entitled may be withheld or reduced. In either case, the amount of the Minister's claim against the employer may be increased accordingly.

The insolvency payments scheme operates under the Protection of Employees (Employers' Insolvency) Acts 1984 to 2007 and is designed to protect certain outstanding pay-related entitlements due to employees in the event of the insolvency of their employer. Such entitlements include wages, holiday pay, sick pay and payment in lieu of minimum notice due under the Minimum Notice and Terms of Employment Act 1973. Various other statutory awards made by the Employment Appeals Tribunal, Rights Commissioners, etc. are also covered by the scheme.

Payments calculated by reference to an employee's wages are subject to a limit of €600 per week and arrears of wages, sick pay, holiday pay and minimum notice are limited to eight weeks. Payments under the insolvency payments scheme, like redundancy payments, are made from the Social Insurance Fund. The Minister for Social Protection becomes a preferential creditor against the assets of an employer in respect of most amounts paid under the scheme.

In so far as customers of Game stores are concerned, the Minister for Social Protection is advised that customers may wish to consult the National Consumer Agency's website, which offers valuable information on consumers' rights where traders go out of business. As the consumer's contract is with the retailer, the consumer should seek to bring his or her problem directly to the attention of the retailer or in the case where the retailer has gone into liquidation, examinership or receivership to the attention of the liquidator, receiver or examiner. The agency's website provides information on different situations which can arise where traders go out of business, including information on the remedies available to consumers who purchased goods by means of credit cards. In so far as issues concerning faulty goods arise, the UK administrators of the Game Group have indicated that they will continue to assist customers in respect of the exchange or refund of faulty goods. Customers of Irish Game stores may wish, therefore, to contact the administrators about any problems they may have in these areas.

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